lndian Toners Developers Ltd.2 INDIAN tONERS & DEVELOPERS LtD. Notice is hereby given that the 29th Annual General Meeting of the Shareholders of INDIAN tONERS & DEVELOPERS LIMItED

lndian Toners & Developers Ltd.

(A Govt. recognized Export House) ClN No. : L74993UP1990PLC015721

Corporate Office : 1223, DLF Tower B, Jasola, New Delhi - 110 025 (lndla)

1.7.2019

The SecretaryThe BSE Limited

Phiroze Jeejeebhoy Towers,Dalal Street,

Mumbai — 400 001.

SCRIP CODE : 523586

SUB.: NOTICE OF 29TH ANNUAL GENERAL MEETING &

ANNUAL REPORT FOR THE YEAR 2018—19 PURSUANT TO

REGULATION 34 OF SEBI (LODR). REGULATIONS, 2015

Dear Sir.

Pursuant to Regulation 34 of SEBI (LODR) Regulations. 201.5. we are

sending herewith notice 0f291h Annual General Meeting and Annual Report

of the Company for the year 2018—19‘ being despatched/senl to the

shareholders in permitted mode.

The above is also being uploaded on the website of the company at

www.indiantoners.eom under Investor Relations section.

This is for your information and records.

Thanking you.

Yours faithfully,For In

'

n Toners & Developers Limited

(S.C. Singhal)Company Secretary

Encl.: As above

‘

I] +91-11-4501 7000 B +91—11-4501 7043 m info@indiantoners,com

Raglstomd. Offlcl I: UNIT (1) : 10.5 km, Milestone. Rampur—Bareilly Road. Rampuri 244901 (U.P.) INDIA

Phone: +91-595—2356271 (20Lines) Fax:+91—595-2356273n c on?!“ _

,

UNIT (2) : 0.11, Phase-ll. EIdeco-Sidcul Industrial Park, Silarganj. (Utlarakhand) INDIA - 262405 cannon if!!!“

29th ANNUAL

REPORt

2018-2019

INDIAN TONERS & DEVELOPERS LIMITED

1

INDIAN tONERS & DEVELOPERS LtD.

CORPORAtE INFORMAtION

BOARD OF DIRECtORS Shri Sushil Jain Chairman & Managing Director

Shri Akshat Jain Wholetime Director

Shri Sanjeev Goel Independent Director

Shri Arun Kumar Garg Independent Director

Smt. Neena Jain Independent Director

COMPANY SECREtARY Shri. S. C. Singhal

ChIEF FINANCIAL OFFICER Shri Naresh Kumar Maheshwari

BANKERS State Bank of India

AUDItORS M.L. Garg & Co.

Chartered Accountants

K-60, 2nd Floor, Connaught Place,

Opp. PVR Plaza, New Delhi –110 001.

REGIStERED OFFICE & UNIt -1

UNIt - 2

10.5 KM, Rampur – Bareilly Road,

Rampur-244 901 (U.P.)

Tel : 0595-2356271

D-11, Phase-II, Eldeco-Sidcul Industrial Park

Sitarganj - 262405

Distt.: Udham Singh Nagar, Uttarakhand

CORPORAtE OFFICE 1223, DLF Tower – B,

Jasola, New Delhi –110 025.

Tel : (011) 45017000 (30 Lines)

Fax No. (011) 45017043

E-Mail : [email protected]

Website : http://www.indiantoners.com

CONtENtS PAGE NO.

Notice ......................................................................................................................................................02

Directors’ Report .....................................................................................................................................12

Management Discussion & Analysis Report ...........................................................................................34

Corporate Governance ...........................................................................................................................36

Auditors’ Report ......................................................................................................................................49

Balance Sheet.........................................................................................................................................56

Statement of Profit & Loss ......................................................................................................................57

Statement of Cash Flow .........................................................................................................................59

Notes on Accounts ..................................................................................................................................61

Auditors’ Report on the Consolidated Financial Statements .................................................................104

Consolidated Financial Statements ......................................................................................................109

2


Notice is hereby given that the 29th Annual General Meeting of the Shareholders of INDIAN tONERS &

DEVELOPERS LIMItED will be held on Wednesday, the 31st July, 2019, at 2.30 p.m. at the Registered Office of the Company at 10.5 K.M. Rampur – Bareilly Road, Rampur – 244901 (Uttar Pradesh) to transact the following

businesses:

ORDINARY BUSINESS:

1. To receive, consider and adopt :

(a) the Audited Financial Statement of the Company for the financial year ended 31st March, 2019, the Directors’ Report and the Auditors’ Report thereon and

(b) the Audited Consolidated Financial Statement of the Company for the financial year ended 31st March,

2019.

2. To declare final dividend for the year 2018-193. To appoint a Director in place of Shri Akshat Jain (DIN No. 03328275) who retires by rotation, and being

eligible, offers himself for re-appointment.

SPECIAL BUSINESS:

4. To consider and if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution:

“RESOLVED thAt pursuant to Sections 149 and 152 read with Schedule IV and other applicable

provisions, if any, of the Companies Act, 2013 (“the Act”) and Companies (Appointment and Qualification of Directors) Rules, 2014 (“the Rules”) and the applicable provisions of the Securities and Exchange Board

of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory

modification(s) or re-enactment(s) thereof, for the time being in force), Mr. Sanjeev Goel (DIN: 00044850), who was appointed as an Independent Director and who holds office of Independent Director upto March 31, 2019, be and is hereby re-appointed as an Independent Director of the Company, not liable to retire by

rotation and to hold office for a second term of 5(five) consecutive years with effect from April 01, 2019 to March 31, 2024, on the Board of the Company.

RESOLVED FURthER thAt the Board or any Committee thereof, be and is hereby authorized to do all

such things, deeds, matters and acts, as may be required to give effect to this resolution and to do all things incidental and ancillary thereto.”



provisions, if any, of the Companies Act, 2013 (“the Act”) and Companies (Appointment and Qualification of Directors) Rules, 2014 (“the Rules”) and the applicable provisions of the Securities and Exchange Board

of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory

modification(s) or re-enactment(s) thereof, for the time being in force), Mr. Arun Kumar Garg (DIN: 00178582), who was appointed as an Independent Director and who holds office of Independent Director upto March 31, 2019, be and is hereby re-appointed as an Independent Director of the Company, not liable

to retire by rotation and to hold office for a second term of 2(two) consecutive years with effect from April 01, 2019 to March 31, 2021, on the Board of the Company.





provisions, if any, of the Companies Act, 2013 (“the Act”) and Companies (Appointment and Qualification of Directors) Rules, 2014 (“the Rules”) and the applicable provisions of the Securities and Exchange

Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any

statutory modification(s) or re-enactment(s) thereof, for the time being in force), Ms. Neena Jain (DIN:

NOtICE

3


01062103), who was appointed as an Independent Director and who holds office of Independent Director upto September 30, 2019, be and is hereby re-appointed as an Independent Director of the Company, not

liable to retire by rotation and to hold office for a second term of 5(five) consecutive years with effect from October 01, 2019 to September 30, 2024, on the Board of the Company.



By Order of the Board

for INDIAN tONERS & DEVELOPERS LtD.

PLACE: New Delhi (S.C. SINGhAL)

DATED: 20th May, 2019 COMPANY SECREtARY

IMPORtANt NOtES:

1. The Register of Members and the Share Transfer Books of the Company will remain closed from 26th July, 2019

to 29th July, 2019 (both days inclusive) for annual closing and determining the entitlement of the shareholders

to the final dividend for the financial year 2018-19.2. A MEMBER ENtItLED tO AttEND AND VOtE At thE MEEtING IS ENtItLED tO APPOINt A PROXY/

PROXIES tO AtEND AND VOtE ON A POLL INStEAD OF hIMSELF / hELRSELF. SUCh A PROXY /

PROXIES NEED NOt BE A MEMBER OF thE COMPANY. A person can act as proxy on behalf of members

not exceeding fifty (50) and holding in the aggregate not more than ten percent of the total share capital of the Company.

The instrument of Proxy in order to be effective, should be deposited at the Registered Office of the Company, duly completed and signed, not less than 48 hours before the commencement of the meeting. A Proxy form is sent herewith. Proxies submitted on behalf of the companies, societies etc. must be supported by an

appropriate resolution / authority, as applicable.

3. To prevent fraudulent transactions, members are advised to exercise due diligence and notify the Company

of any change in address or demise of any member as soon as possible, Members are also advised not to

leave their demat account(s) dormant for long. Periodic statement of holdings should be obtained from the

concerned Depository Participant and holding should be verified. 4. The Board of Directors has recommended Final Dividend of Rs. 1.50 per Equity Share for the financial year

2018-19 that is proposed to be paid on and from 10.08.2019 subject to the approval of the shareholders at the ensuing AGM. Interim Dividend for the financial year 2018-19 at the rate of Rs. 1.50 per Equity Share was paid on 26.11.2018.

5. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account

Number (PAN) by every participant in securities market. Members holding shares in electronic form are,

therefore, requested to submit the PAN to their Depository Participants with whom they are maintaining their

demat accounts. Members holding shares in physical form can submit their PAN details to the Company.

6. Details under Regulation 36(3) of SEBI (LODR) Regulations, 2015 in respect of the Directors seeking

appointment/re-appointment at the Annual General Meeting, forms integral part of the Notice. The Directors

have furnished the requisite declarations for their appointment/re-appointment.

7. Electronic copy of the Annual Report for the year 2018-19 is being sent to all the members whose email IDs are registered with the Company/Depository Participant(s) for communication purposes unless any member

has requested for a hard copy of the same. For members who have not registered their email address, physical

copies of the Annual Report for the year 2018-19 is being sent in the permitted mode.

4


8. Electronic Copy of the Notice of the 29th Annual General Meeting of the Company inter alia indicating the

process and manner of remote e-voting and e-voting along with Attendance Slip and Proxy Form is being

sent to all the members whose email IDs are registered with the Company/Depository Participant(s) for

communication purposes unless any member has requested for a hard copy of the same. For members who

have not registered their email address, physical copies of the Notice of the 29th Annual General Meeting of the

Company inter alia indicating the process and manner of e – voting along with Attendance Slip and Proxy Form

is being sent in the permitted mode.

9. Members may also note that the Notice of the 29th Annual General Meeting and the Annual Report for the

year 2018-2019 will also be available on the Company’s website www.indiantoners.com for their download.

The physical copies of the aforesaid documents will also be available at the Company’s Registered Office for inspection during normal business hours on working days. Even after registering for e-communication,

members are entitled to receive such communication in physical form, upon making a request for the same, by

post free of cost. For any communication, the shareholders may also send requests to the Company’s investor

email id: [email protected]

10. In compliance with the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014, the Company is pleased to offer the facility of voting through electronic means. The cut-off date for determining the eligibility to vote by electronic means or by ballot in the general meeting shall be 24th July, 2019. The members attending the meeting who have not already cast their

vote by remote e-voting shall be able to exercise their right at the meeting in terms of notification issued by the Ministry of Corporate Affairs dated 19.03.2015.

11. how to Log-in to NSDL e-Voting website?

1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.

nsdl.com/ either on a Personal Computer or on a mobile.

2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under

‘Shareholders’ section.

3. A new screen will open. You will have to enter your User ID, your Password and a Verification Code as shown on the screen.

Alternatively, if you are registered for NSDL e-services i.e. IDEAS, you can log-in at https://eservices.nsdl.

com/ with your existing IDEAS login. Once you log-in to NSDL services after using your log-in credentials,

click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.

4. Your User ID details are given below :

Manner of holding shares i.e. Demat (NSDL

or CDSL) or Physical

Your User ID is:

a) For Members who hold shares in demat

account with NSDL.

8 Character DP ID followed by 8 Digit Client IDFor example if your DP ID is IN300*** and Client

ID is 12****** then your user ID is IN300***12******.

b) For Members who hold shares in demat

account with CDSL.

16 Digit Beneficiary IDFor example if your Beneficiary ID is 12************** then your user ID is 12**************

c) For Members holding shares in Physical

Form.

EVEN Number followed by Folio Number

registered with the company

For example if folio number is 001*** and EVEN is

101456 then user ID is 101456001***

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5. Your password details are given below:

a) If you are already registered for e-Voting, then you can use your existing password to login and cast your vote.

b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was communicated to you. Once you retrieve your ‘initial password’, you need enter the ‘initial password’ and the system will force you to change your password.

c) How to retrieve your ‘initial password’?

(i) If your email ID is registered in your demat account or with the company, your ‘initial password’ is communicated to you on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.

(ii) If your email ID is not registered, your ‘initial password’ is communicated to you on your postal address.

6. If you are unable to retrieve or have not received the “ Initial password” or have forgotten your password:

a) Click on “Forgot User Details/Password?”(If you are holding shares in your demat account with NSDL or CDSL) option available on www.evoting.nsdl.com.

b) Physical User Reset Password?” (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.

c) If you are still unable to get the password by aforesaid two options, you can send a request at [email protected] mentioning your demat account number/folio number, your PAN, your name and your registered address.

d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system of NSDL.

7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.

8. Now, you will have to click on “Login” button. 9. After you click on the “Login” button, Home page of e-Voting will open.

how to cast your vote electronically on NSDL e-Voting system?

1. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then, click on Active Voting Cycles.

2. After click on Active Voting Cycles, you will be able to see all the companies “EVEN” in which you are holding shares and whose voting cycle is in active status.

3. Select “EVEN” of company for which you wish to cast your vote.

4. Now you are ready for e-Voting as the Voting page opens.

5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.

6. Upon confirmation, the message “Vote cast successfully” will be displayed. 7. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation

page.

8. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

General Guidelines for shareholders

1 Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen

signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail

to [email protected] with a copy marked to [email protected].

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2. It is strongly recommended not to share your password with any other person and take utmost

care to keep your password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through

the “Forgot User Details/Password?” or “Physical User Reset Password?” option available on www.

evoting.nsdl.com to reset the password.

3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting

user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free

no.: 1800-222-990 or send a request at [email protected]

12. Any person who becomes a member of the Company after dispatch of the Notice of the Meeting and holding

shares as on the cut-off date i.e. 24th July, 2019, may obtain the User ID and password in the manner as

mentioned below:

If e-mail address or mobile number of the member is registered against Folio No./DP ID Client ID, then on the

home page of https://evoting.nsdl.com, the member may click “Forgot Password” and enter Folio No. or DP ID

Client ID and PAN to generate a password. Member may send an e-mail request to [email protected]

If the member is already registered with NSDL e-voting platform then he can use his existing User ID and

password for casting the vote through remote e-voting.

13. All documents referred to in the accompanying Notice shall be open for inspection at the Registered Office of the Company during normal business hours (9.00 am to 5.00 pm) on all working days, up to and including the

date of the Annual General Meeting of the Company

14. Members, who hold shares in de-materialized form, are requested to bring their client ID and DP ID Nos. for

easier Identification of attendance at the Meeting.

15. In all correspondence with the Company members are requested to quote their Account / Folio Numbers and in

case their Shares are held in the dematerialized form they must quote their Client ID No. and their DP ID No.

16. Members, desirous of availing electronic form of delivery of balance sheet and other related documents are

requested to update their E–mail address with the Registrar and Transfer Agents or with the Company by a

written request.

17. Under Section 125 read with Section124 of the Companies Act, 2013, the dividend amounts which remain

unpaid/unclaimed for a period of seven years from the date of declaration, are required to be transferred to the

Investor Education and Protection Fund (IEPF) of the Central Government. After such transfer, no claim of

the members whatsoever shall subsist on the said amount. Therefore members are requested to encash their

dividend warrants on priority within the validity period. Further, the particulars of unpaid/unclaimed dividend etc.

are uploaded/being uploaded on the Company’s website www.indiantoners.com.

18. In order to avoid fraudulent encashment of dividend warrants, Members holding shares in physical form are

requested to send to Alankit Assignments Limited, 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi – 110 055, on or before Friday, July 26, 2019 a Bank Mandate (providing details of name and address of

banker, branch, PIN code and particulars of the bank account) or changes therein, if not provided earlier, under

the signature of the Sole/First holder quoting their Folio Number. This information will be printed on the dividend

warrants. Members may also avail of the Electronic Clearing Service (ECS) mandate facility provided by the

Company.

19. SEBI vide its Notification No. SEBI/LAD-NRO/ GN/2018/24 dated June 8, 2018 and further amendment vide its Notification No. SEBI/LAD-NRO/ GN/2018/49 dated November 30, 2018, prescribed that the requests for effecting transfer of securities (except in case of transmission or transposition of securities) shall not be processed from April 1, 2019 unless the securities are held in the dematerialized form with the depositories.

Therefore, Shareholders holding shares in physical form are requested to take action to dematerialize the

equity shares of the Company promptly.

7


ANNEXURE tO NOtICE CONVENING 29th ANNUAL GENERAL MEEtINGExplanatory statement pursuant to section 102 (1) of the companies act, 2013:

ItEM NO. 4 .

Mr. Sanjeev Goel was appointed as an Independent Director on the Board of the Company pursuant to the

provisions of Section 149 of the Act read with the Companies (Appointment and Qualification of Directors) Rules, 2014. He holds office as an Independent Director of the Company up to March 31, 2019 (“first term” in line with the explanation to Sections 149(10) and 149(11) of the Act). The Nomination and Remuneration Committee

of the Board of Directors, on the basis of the report of performance evaluation of Independent Director, has

recommended re-appointment of Mr. Sanjeev Goel for a second term of 5 (five) consecutive years on the Board of the Company. The Board, based on the performance evaluation of Independent Director and based on the

recommendation of Nomination and Remuneration Committee, considered that his continued association would

be of immense benefit to the Company and it is desirable to continue to avail services of Mr. Sanjeev Goel as an Independent Director. Accordingly, it is proposed to re-appoint Mr. Sanjeev Goel as an Independent Director

for a second term of 5 (five) consecutive years on the Board of the Company w.e.f. April 01, 2019 to March 31, 2024.

Mr. Sanjeev Goel is a Non – Executive Independent Director of the Company. He joined the Board of Directors of

the Company on 31.05.2002. Mr. Sanjeev Goel is the Chairman of Audit Committee, Nomination and Remuneration

Committee and Corporate Social Responsibility (CSR) Committee and a member of the Stakeholders’ Relationship

Committee of the Board of Directors of the Company.

Mr. Sanjeev Goel is a dynamic Chartered Accountant of 60 years and in practice since February 1982 as a Sr. Partner in M/s. Goel, Garg & Co. He has 37 years experience to his credit with exposure in all fields relating to Audit, Accounts, Finance, Taxation, Business Rehabilitation & Restructuring.

He is holding 2628 shares of the Company. He does not have inter-se relationship with any other Director and Key Managerial Personnel (KMP) of the Company. Section 149 and Section 152 of the Companies Act, 2013

inter alia specifies that: (a) Independent Directors shall hold office for a term of upto five consecutive years, and shall be eligible for reappointment upto five years, subject to passing of special resolution by the Shareholders in General Meeting; and (b) An Independent Director shall not be liable to retire by rotation at the Annual General

Meeting. The provisions further provide that the Independent Directors shall give a confirmation of independence and meeting of the prescribed criteria, as mentioned in Section 149(6) of the Companies Act, 2013. In terms of

Section 149 and other applicable provisions of Companies Act, 2013, Mr. Sanjeev Goel, being eligible and offering himself for re-appointment, is proposed to be appointed as an Independent Director for 5 (five) consecutive years w.e.f. April 01, 2019 to March 31, 2024. The Company has received from Mr. Sanjeev Goel – (i) Intimation in Form

DIR 8 in terms of Companies (Appointment and Qualification of Directors) Rules, 2014, to the effect that he is not disqualified under Sub Section (2) of Section 164 of the Companies Act, 2013. (ii) A declaration to the effect that he meets the criteria of independence as provided under Sub Section (6) of Section149 of the Companies Act,

2013. In the opinion of the Board, Mr. Sanjeev Goel fulfils the conditions specified in the Companies Act, 2013 and rules made thereunder and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, for his

re-appointment as an Independent Director of the Company and he is independent of the management. Copy of

the draft letter for reappointment of Mr. Sanjeev Goel as an Independent Director would be available for inspection

without any fee, by the members at the Registered Office and Corporate Office of the Company during normal business hours on any working day, excluding Sunday. This Explanatory Statement may also be regarded as a

disclosure under Regulation 36 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015.

Except Mr. Sanjeev Goel, being an appointee, none of the Directors and Key Managerial Personnel of the Company

and their relatives is concerned or interested, financially or otherwise, in the resolution set out at item No. 4.

The Board recommends passing of the Resolution.

8


ItEM NO. 5 .

Mr. Arun Kumar Garg was appointed as an Independent Director on the Board of the Company pursuant to the

provisions of Section 149 of the Act read with the Companies (Appointment and Qualification of Directors) Rules, 2014. He holds office as an Independent Director of the Company up to March 31, 2019 (“first term” in line with the explanation to Sections 149(10) and 149(11) of the Act). The Nomination and Remuneration Committee of the Board

of Directors, on the basis of the report of performance evaluation of Independent Director, has recommended re-

appointment of Mr. Arun Kumar Garg for a second term of 2 (two) consecutive years on the Board of the Company.

The Board, based on the performance evaluation of Independent Director and based on the recommendation of

Nomination and Remuneration Committee, considered that his continued association would be of immense benefit to the Company and it is desirable to continue to avail services of Mr. Arun Kumar Garg as an Independent Director.

Accordingly, it is proposed to re-appoint Mr. Arun Kumar Garg as an Independent Director for a second term of 2

(two) consecutive years on the Board of the Company w.e.f. April 01, 2019 to March 31, 2021.

Mr. Arun Kumar Garg is a Non – Executive Independent Director of the Company. He joined the Board of

Directors of the Company on 17.09.2012. Mr. Arun Kumar Garg is the Member of Audit Committee, Nomination and

Remuneration Committee and Corporate Social Responsibility (CSR) Committee of the Company.

Mr. Arun Kumar Garg is a dynamic, Chartered Accountant of 61 years and is in practice. Mr. Arun Kumar Garg

founded Arun K. Garg and Associates in the year 1985. The Principal offices of Arun K. Garg and Associates are at Delhi & Gurgaon and Associates all over the country. He has 36 years experience to his credit with exposure in all

fields relating to Audit, Accounts, Finance, Taxation, Business Rehabilitation & Restructuring. He is also a Director in M/s. Styx Back Office Service Pvt. Ltd., M/s. Marius Risk Management Private Ltd., M/s. Elevate It Services Private Ltd., M/s. Bharat Bhushan Finance & Commodity Brokers Limited and M/s. Sirion Labs Private Ltd.

He is not holding any shares of the Company. He does not have inter-se relationship with any other Director and

Key Managerial Personnel (KMP) of the Company. Section 149 and Section 152 of the Companies Act, 2013 inter

alia specifies that: (a) Independent Directors shall hold office for a term of upto five consecutive years, and shall be eligible for reappointment upto five years, subject to passing of special resolution by the Shareholders in General Meeting; and (b) An Independent Director shall not be liable to retire by rotation at the Annual General Meeting.

The provisions further provide that the Independent Directors shall give a confirmation of independence and meeting of the prescribed criteria, as mentioned in Section 149(6) of the Companies Act, 2013. In terms of Section

149 and other applicable provisions of Companies Act, 2013, Mr. Arun Kumar Garg, being eligible and offering himself for re-appointment, is proposed to be appointed as an Independent Director for 2 (two) consecutive years

w.e.f. April 01, 2019 to March 31, 2021. The Company has received from Mr. Arun Kumar Garg – (i) Intimation in

Form DIR 8 in terms of Companies (Appointment and Qualification of Directors) Rules, 2014, to the effect that he is not disqualified under Sub Section (2) of Section 164 of the Companies Act, 2013. (ii) A declaration to the effect that he meets the criteria of independence as provided under Sub Section (6) of Section149 of the Companies Act,

2013. In the opinion of the Board, Mr. Arun Kumar Garg fulfils the conditions specified in the Companies Act, 2013 and rules made thereunder and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, for his

re-appointment as an Independent Director of the Company and he is independent of the management. Copy

of the draft letter for reappointment of Mr. Arun Kumar Garg as an Independent Director would be available for

inspection without any fee, by the members at the Registered Office and Corporate Office of the Company during normal business hours on any working day, excluding Sunday. This Explanatory Statement may also be regarded

as a disclosure under Regulation 36 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations

2015.

Except Mr. Arun Kumar Garg, being an appointee, none of the Directors and Key Managerial Personnel of the

Company and their relatives is concerned or interested, financially or otherwise, in the resolution set out at item

No. 5.


9


ItEM NO. 6

Ms. Neena Jain was appointed as an Independent Director on the Board of the Company pursuant to the provisions of Section 149 of the Act read with the Companies (Appointment and Qualification of Directors) Rules, 2014. She holds office as an Independent Director of the Company up to September 30, 2019 (“first term” in line with the explanation to Sections 149(10) and 149(11) of the Act). The Nomination and Remuneration Committee of the Board of Directors, on the basis of the report of performance evaluation of Independent Director, has recommended re-appointment of Ms. Neena Jain for a second term of 5 (five) consecutive years on the Board of the Company. The Board, based on the performance evaluation of Independent Director and based on the recommendation of Nomination and Remuneration Committee, considered that her continued association would be of immense benefit to the Company and it is desirable to continue to avail services of Ms. Neena Jain as an Independent Director. Accordingly, it is proposed to re-appoint Ms. Neena Jain as an Independent Director for a second term of 5 (five) consecutive years on the Board of the Company w.e.f. October 01, 2019 to September 30, 2024.

Ms. Neena Jain is the Member of Nomination & Remuneration Committee and Stakeholders Relationship Committee of the Board of Directors of the Company.

Ms. Neena Jain is a Chartered Accountant of 54 years and is in practice. Ms. Neena Jain is a partner of M/s Anil Ram Kumar & Co., Chartered Accountants, Delhi. She has 30 years’ experience to her credit with exposure in project financing, banking, audit, secretarial, taxation, credit and cash flow management, financial due diligence, valuation and buy-back of shares. She is also a Director in M/s Best Bargain Finance Pvt. Limited.

She is not holding any shares of the Company. She does not have inter-se relationship with any other Director and Key Managerial Personnel (KMP) of the Company. Section 149 and Section 152 of the Companies Act, 2013 inter alia specifies that: (a) Independent Directors shall hold office for a term of upto five consecutive years, and shall be eligible for reappointment upto five years, subject to passing of special resolution by the Shareholders in General Meeting; and (b) An Independent Director shall not be liable to retire by rotation at the Annual General Meeting. The provisions further provide that the Independent Directors shall give a confirmation of independence and meeting of the prescribed criteria, as mentioned in Section 149(6) of the Companies Act, 2013. In terms of Section 149 and other applicable provisions of Companies Act, 2013, Ms. Neena Jain, being eligible and offering herself for re-appointment, is proposed to be appointed as an Independent Director for 5 (five) consecutive years w.e.f. October 01, 2019 to September 30, 2024. The Company has received from Ms. Neena Jain – (i) Intimation in Form DIR 8 in terms of Companies (Appointment and Qualification of Directors) Rules, 2014, to the effect that she is not disqualified under Sub Section (2) of Section 164 of the Companies Act, 2013. (ii) A declaration to the effect that she meets the criteria of independence as provided under Sub Section (6) of Section149 of the Companies Act, 2013. In the opinion of the Board, Ms. Neena Jain fulfils the conditions specified in the Companies Act, 2013 and rules made thereunder and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, for her re-appointment as an Independent Director of the Company and she is independent of the management. Copy of the draft letter for reappointment of Ms. Neena Jain as an Independent Director would be available for inspection without any fee, by the members at the Registered Office and Corporate Office of the Company during normal business hours on any working day, excluding Sunday. This Explanatory Statement may also be regarded as a disclosure under Regulation 36 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015.

Except Ms. Neena Jain, being an appointee, none of the Directors and Key Managerial Personnel of the Company and their relatives is concerned or interested, financially or otherwise, in the resolution set out at item No. 6.


All the material documents referred to in the accompanying Notice shall be open for inspection by the Members at the Registered Office of the Company on all working days between 11.00 a.m. to 05.00 p.m. excluding public holidays.

By Order of the Board


(S.C. SINGhAL)

PLACE: New Delhi COMPANY SECREtARY

DATED: 20th May, 2019

10


DEtAILS OF DIRECtORS SEEKING APPOINtMENt/RE-APPOINtMENt At thE

FORthCOMING ANNUAL GENERAL MEEtING AS REQUIRED UNDER REGULAtION 36(3)

OF SEBI (LODR) REGULAtIONS, 2015

Name of the

Director

Mr. Akshat Jain Mr. Sanjeev Goel Mr. Arun Kumar

Garg

Ms. Neena Jain

DIN Number 03328275 00044850 00178582 01062103

Date of Birth 10.06.1983 20.4.1959 27.11.1957 13.12.1964

Date of Appointment 01.04.2018 31.05.2002 17.09.2012 01.10.2014

Qualification Bachelor of Science in

Business Administration

B.Com., FCA FCA B.Com., FCA,

IFRS, DISA

Brief Resume and

Experience/

Expertise

Mr. Akshat Jain, is a young

and dynamic Industrialist

and is associated with the

Company since 01.03.2005

at different positions. He has more than 13 years’

experience to his credit

in managing the affairs of Industrial Undertakings at

top management levels.

He has very efficiently and suitably managed the

affairs of the Company at various levels from time to

time.

For the details of

Mr. Sanjeev Goel,

please refer the

above Explanatory

Statement of this

Notice.

For the details of Mr.

Arun Kumar Garg,

please refer the

above Explanatory

Statement of this

Notice.

For the details of

Ms. Neena Jain,

please refer the

above Explanatory

Statement of this

Notice.

Disclosure of

Relationships

between Directors

inter-se

Mr. Akshat Jain is son of

Sh. Sushil Jain, Chairman

& Managing Director of the

company.

Directorship held

in other Public

Companies

NIL

Chairman /

Membership of

Committees in

other Public Limited

Companies

NIL

No. of Shares held

on 31.03.2019

1399407

11



1223, DLF tower – “B”, Jasola, NEW DELhI – 110 025

20.05.2019

Dear Shareholder,

DESPAtCh OF DOCUMENtS tO YOU thROUGh thE ELECtRONIC MODE

The Ministry of Corporate Affairs (“MCA”) has now expressly permitted companies to effect service of documents of shareholders through the electronic mode by giving each shareholder an opportunity to register with the Company

his / her e – mail address.

We, therefore, plan to send documents such as the Annual Report, Notices of General Meetings, Circulars and

Postal Ballot Notices by e – mail to those shareholders whose e-mail IDs are available with us.

The MCA has clarified that service of documents on shareholders through e – mail will constitute sufficient compliance with the provisions of the Companies Act, 2013.

In view of the above, should you desire to receive documents from the company through the electronic mode,

please send us an e – mail at [email protected] stating either your Folio No. or your DPID and Client

ID Numbers, Shareholders holding shares in the dematerialized form should ensure that their e–mail ids appear in

the records of their Depository Participant (“DP”) also. You may, however, change your instructions at any time and

request us to send you documents in the physical form only.

The documents that we propose e – mailing you will also’s be available for ready access on our website www.

indiantoners.com

We trust as a responsible citizen you will join us in our initiative to conserve the environment through the curtailment

of consumption of paper.

Thanking You,

Yours faithfully,


Secretarial Department

12


To

The Members,

Your Directors have pleasure in presenting the 29th Annual Report alongwith the Accounts for the year ended March

31, 2019.

Working Results

Rs. in Lacs

----------------------------------------------------------------

For the year ended

31st March 2019

For the year ended

31st March 2018

Standalone Consolidated Standalone Consolidated

Revenue from Operations 11548 11529 11201 11232

Operating Gross ProfitAdd/ Financial Charges

2957

(63)

2909

(63)

3411

(57)

3376

(57)

(Less): Depreciation & Other Amortizations (377) (377) (368) (368)

Profit before tax 2517 2469 2986 2951

Add/

(Less)

Provision for tax–

Current Year & MAT Cr. Ent.

Previous Year Tax Adjustment

(413)

(77)

(413)

(77)

(578)(11)

(560)

(11)

Deferred Tax Assets (Liabilities) 14 14 25 25

Surplus Available for appropriation 2041 1993 2422 2405

OPERAtIONS

During the financial year ended March 31, 2019, your Company recorded a turnover of Rs.11548 lacs as compared to the turnover of Rs.11201 lacs recorded during the previous financial year ended March 31, 2018. Out of this 28.33% of revenue was from Exports and rest from domestic sales. Revenue from operations for the year ended March 31, 2019 has increased marginally only by 3% over the corresponding period of last year. The Net Profit of your Company for the financial year ended March 31, 2019 stood at Rs. 2041 lacs as against the Net Profit of Rs.2422 lacs for the financial year ended March 31, 2018. During the year, the production and sales in quantity was also higher by 3.6% and 4.27% respectively. However, the profit before and after tax was lower by around 15.7% due to fluctuation in foreign exchange, increase in power & fuel cost and higher discounts to compete with imported toner.

On a consolidated basis, your Company recorded a turnover of Rs.11529 lacs during the financial year ended March 31, 2019 and achieved consolidated Net Profit of Rs.1993 lacs for the said financial year.

Your Company continued to be India’s leading and most preferred TONER brand by developing and implementing

a strong marketing strategy to support its new image and position. Your Company keeps on investing in

understanding customer needs through intensive customer interactions and research and uses that knowledge in

effectively delivering customer need based solutions.

DIVIDEND

The Board of Directors have recommended an interim dividend @ Rs.1.50 or (15%) per Equity Share of Rs.10/- each on 3.11.2018. The dividend payout for the interim dividend was Rs. 1,97,42,415 including a dividend distribution tax of Rs. 40,58,787. The Board of Directors have recommended final dividend @ Rs.1.50 or (15%) per Equity Share of Rs.10/- each for the Financial Year 2018-19.The dividend payout for the final dividend will be Rs. 1,97,42,415 including a dividend distribution tax of Rs. 40,58,787.The final dividend is subject to approval

DIRECtORS’ REPORt

13


of shareholders at the Annual General Meeting. The total dividend payout for the financial year 2018-19 will be Rs. 3,94,84,830 including a dividend distribution tax of Rs. 81,17,574.

PUBLIC DEPOSItS:

During the year under review, your Company has neither invited nor accepted any fixed deposits from the public within the meaning of Section 73 of the Companies Act, 2013, read with the Companies (acceptance of Deposits)

Rules, 2014.

FUtURE OUtLOOK AND PLANS

With Imaging industry expected to flourish on back of increasing demand for offices especially in tier 2 and tier 3 cities domestic business will also do good. India still remains a largely under-penetrated market as compared to

the developed countries giving us the visibility for long term growth. With 120+ Distributors and 600 dealers spread

throughout the country we are at fore-front to satisfy this huge gap.

Our wholly owned subsidiary “Indian Toners USA Company” has been gaining traction in the U.S. market thereby

opening up opportunity in the overseas market. Our focus in U.S.A is to create a product positioning, known for its

high quality compatible toners and establish ourselves as a trusted supplier.

Efforts are going on to develop more products of toner and your Company is hopeful to achieve the desired results with the help of the research team.

The Management of your Company is actively exploring opportunities to invest in some new projects and other

activities as part of diversification plan.

WhOLLY OWNED SUBSIDIARY

In order to cover the untapped markets of North and South America, the Wholly Owned Subsidiary of the

Company in the State of Florida (USA) has already become operational. However, so far the results are not as per

expectations but all out efforts are being made to improve the same.

During the year under review, the Company has also incorporated another wholly owned subsidiary in Singapore

ITDL Company (S) PTE. Ltd., which was closed later on as the desired purpose was not achieved.

RESEARCh AND DEVELOPMENt ACtIVItIES

Your Company continued the research and development activities during the year in the key areas of product,

process and material development. Your Company has always given prime importance to Research & Development

which is the basis of your Company’s success. With the help of the Pilot Plant, your Company has successfully

developed new quality products at competitive prices to face the global competition and is very optimistic to

develop many more products in the times to come.

Continuing recognition by the Department of Scientific and Industrial Research, Ministry of Science & Technology to your In – House R & D Unit is a moral boosting and an encouraging feature for the team of your Research &

Development Centre.

During the year the Company has incurred R & D expenses of Rs. 86.25 Lacs in various heads in addition to Rs. 9.71 Lacs for purchase of capital items. Your Company has exhaustive programme of R & D activities in the

coming years.

CODE OF CONDUCt:

The Board of Directors has approved a Code of Conduct which is applicable to the Members of the Board and

all employees in the course of day to day business operations of the company. The Company believes in “Zero

Tolerance” against bribery, corruption and unethical dealings/behaviours of any form and the Board has laid down

the directives to counter such acts. The Code has been posted on the Company’s website www.indiantoners.

com.

The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors

and the designated employees in their business dealings and in particular on matters relating to integrity in the

work place, in business practices and in dealing with stakeholders.

14


All the Board Members and the Senior Management personnel have confirmed compliance with the Code. All Management Staff were given appropriate training in this regard.

EXtRACt OF ANNUAL REtURN:

Pursuant to prescribed provisions of Companies Act, 2013 and rules framed thereunder extract of Annual Return

in Form MGT-9 is annexed as Annexure “1” to this report and the same has been hosted on the website of the

company and can be viewed at www.indiantoners.com under Investor Relations Section.

NUMBER OF BOARD MEEtINGS hELD

The Board of Directors duly met 4 times during the financial year from 1st April, 2018 to 31st March, 2019. The dates

on which the meetings were held are as follows:

17th May, 2018, 23rdJuly, 2018, 3rd November, 2018 and 11th February, 2019.

COMPOSItION OF COMMIttEES

Name of

Committee

Members No. of Meetings

during the year

Dates of Meetings Change, if any,

during the year

Audit Committee Sh. Sanjeev Goel

Sh. Sushil Jain

Sh. Arun K. Garg

4 17.5.2018, 23.7.2018, 3.11.2018, 11.2.2019

Nomination &

Remuneration

Committee

Sh. Sanjeev Goel

Sh. Sushil Jain

Sh. Arun Kr. Garg

Smt. Neena Jain

2 14.8.20184.2.2019

Smt. Neena Jain

was appointed w.e.f.

11.2.2019

Corporate Social

Responsibility

Committee

Sh. Sanjeev Goel

Sh. Sushil Jain

Sh. Arun K. Garg

1 4.2.2019

Stakeholders

Relationship

Committee

Sh. Sanjeev Goel

Sh. Sushil Jain

Smt. Neena Jain

1 30.3.2019 Smt. Neena Jain

was appointed w.e.f.

11.2.2019

Share Transfer

Committee

Sh. Sushil Jain

Sh. S.C. Singhal

Sh. N.K. Maheshwari

32 03.04.2018, 13.04.2018, 25.04.2018, 01.05.2018, 08.05.2018,22.05.2018, 06.06.2018, 16.07.2018,27.06.2018,23.07.2018, 25.07.2018, 08.08.2018, 20.08.2018, 31.08.2018, 10.09.2018, 20.09.2018, 01.10.2018, 10.10.2018,31.10.2018, 15.11.2018, 22.11.2018, 01.12.2018, 11.12.2018, 20.12.2018, 31.12.2018, 10.01.2019, 19.01.2019, 31.01.2019,

11.02.2019, 01.03.2019,

12.03.2019, 20.03.2019

SECREtARIAL StANDARDS

During the year, your company has complied with the applicable Secretarial Standards issued by the Institute of

Company Secretaries of India.

15


DIRECtORS’ RESPONSIBILItY StAtEMENt

Pursuant to Section 134(5) of the Companies Act, 2013, based upon the management representation Directors of

your Company hereby state and confirm that:

a) in the preparation of the annual accounts for the year ended 31st March, 2019, the applicable accounting

standards have been followed along with proper explanation relating to material departures;

b) the directors have selected such accounting policies and applied them consistently and made judgments and

estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for that period;

c) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for

preventing and detecting fraud and other irregularities;

d) the directors have prepared the annual accounts on a going concern basis;

e) the directors have laid down internal financial controls in the company that are adequate and were operating effectively.

f) the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and

such systems are adequate and are operating effectively.

REMUNERAtION POLICY

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for

selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy

is stated in the Corporate Governance Report and also available on the Company website www.indiantoners.

com.

PREVENtION OF INSIDER tRADING:

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading

in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for

dealing in the Company’s shares and prohibits the purchase or sale of Company shares by the Directors and the

designated employees while in possession of unpublished price sensitive information in relation to the Company

and during the period when the Trading Window is closed. The Board is responsible for implementation of the

Code.

All Board Directors and the designated employees have confirmed compliance with the Code.

Requirements of Regulation 8 (Code of Fair Disclosure) & Regulation 9 (Code of Conduct) of SEBI (Prohibition of Insider Trading) Regulations, 2015 have been noted and complied with by the Company.

StAtUtORY AUDItORS & AUDItORS’ REPORt

The Statutory Auditors of the Company were appointed by the Members at the 27th Annual General Meeting of the

Company for an initial term of 5 years i.e. from the conclusion of 27th Annual General Meeting till the conclusion

of 32ndAnnual General Meeting of the Company pursuant to Section 139 of the Companies Act, 2013. They have

confirmed that they are not disqualified from continuing as Auditors of the Company.

The Notes on Financial Statements referred to in the Auditors’ Report are self-explanatory and do not call for any

further comments.

The consolidated accounts along with the Statement pursuant to Section 129 of the Companies Act, 2013 are

annexed.

SECREtARIAL AUDIt REPORt

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014, the Audit Committee recommended and the Board

16


of Directors has appointed M/s. Mukesh Agarwal & Co. (CP No.:3851, FCS: 5991), Company Secretaries to undertake the Secretarial Audit of the company for the financial year 2019-20. Your company has received their written consent that the appointment will be in accordance with the applicable provisions of the Act and rules

framed thereunder. The Secretarial Audit Report is annexed as Annexure “2”.

INtERNAL AUDIt & INtERNAL AUDItORS

The Company has well-structured Internal Audit function. Pursuant to the provisions of Section 138 of the Companies Act, 2013 and other applicable provisions, if any, the Board of Directors on the recommendations of

the Audit Committee have appointed M/s B.K. Shroff & Co., Chartered Accountants as Internal Auditors of the Company for the financial year 2019-20.

COSt AUDItORS

Maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148 (1) of the Companies Act, 2013 are not applicable for the business activities carried out by the Company.

PARtICULARS OF LOANS, GUARANtEES OR INVEStMENtS

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.

RELAtED PARtY tRANSACtIONS:

Related party transactions that were entered during the financial year were on an arm’s length basis and were in the ordinary course of business. There was no materially significant related party transactions with the Company’s Promoters, Directors, Key Managerial Personnel or other designated persons or their relatives,

which could have had a potential conflict with the interests of the Company. Transactions with related parties entered by the Company in the normal course of business are periodically placed before the Audit Committee

for its approval.

The Board of Directors of the Company has, on the recommendation of the Audit Committee, adopted a policy to

regulate transactions between the Company and its Related Parties, in compliance with the applicable provisions

of the Companies Act, 2013, the Rules framed thereunder and the Listing Agreement. This Policy as considered

and approved by the Board has been uploaded on the website of the Company at www.indiantoners.com.

DEVELOPMENt AND IMPLEMENtAtION OF A RISK MANAGEMENt POLICY:

Pursuant to Section 134 (3) (n) of the Companies Act, 2013 & Regulation 21 of SEBI (LODR) Regulations,

2015, the Board of Directors of a listed Company are required to constitute Risk Management Committee.

However, the provisions of this regulation are applicable to top 500 listed entities, determined on the basis of

market capitalization, as at the end of the immediate previous financial year. Our Company does not fall under this category.

CORPORAtE SOCIAL RESPONSIBILItY (CSR) COMMIttEE

Your directors have already constituted the Corporate Social Responsibility (CSR) Committee comprising of

Shri Sanjeev Goel as the Chairman, Shri Sushil Jain and Shri Arun Kumar Garg as other members.

As part of its initiatives under “Corporate Social Responsibility” (CSR), the company has contributed almost entire

funds (calculated in terms of Section 198 of the Act) to the Prime Minister’s National Relief Fund.

The Annual Report on CSR Activities is annexed as Annexure “3”.

BOARD EVALUAtION

Pursuant to the provisions of Companies Act, 2013 and Regulation 17 of SEBI (LODR) Regulations, 2015, the

Board has carried out annual performance evaluation of its own performance, the directors individually as well

the evaluation of the Chairman and the working of its Audit, Nomination & Remuneration, Corporate Social

Responsibility and Stakeholders Committees. The manner in which the evaluation has been carried out has been

explained in Corporate Governance Report.

17


VIGIL MEChANISM/WhIStLE BLOWER POLICY

In order to ensure that the activities of the Company and its employees are conducted in a fair and transparent

manner by adoption of highest standards of professionalism, honesty, integrity and ethical behaviour the company

has adopted a vigil mechanism policy. This policy is posted on the website of company.

SIGNIFICANt AND MAtERIAL ORDERS PASSED BY thE REGULAtORS OR COURtS:

There has been no significant and material order passed by the Regulators or Courts that would impact the going concern status of the Company and its future operations.

DEtAILS PERtAINING tO REMUNERAtION AS REQUIRED UNDER SECtION 197(12) OF thE COMPANIES

ACt, 2013 READ WIth RULE 5(1) OF thE COMPANIES (APPOINtMENt AND REMUNERAtION OF

MANAGERIAL PERSONNEL) RULES, 2014 REMUNERAtION RAtIO OF thE DIRECtORS/KEY MANAGERIAL

PERSONNEL (KMP)/EMPLOYEES:

(i) The percentage increase in remuneration of each Director, Chief Executive Officer, Company Secretary and Chief Financial Officer during the financial year 2018-19, ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2018-19 are as under:

sl.

No.

Name DESIGNAtION REMUNERAtION

PAID IN FY

2018-19 (RS. IN

LACS)

REMUNERAtION

PAID IN FY

2017-18 (RS. IN

LACS)

% INCREASE IN

REMUNERAtION

FROM

PREVIOUS YEAR

RAtIO/ tIMES

PER MEDIAN

OF EMPLOYEE

REMUNERAtION

1. Sh. Sushil Jain Chairman &

Managing

Director, CEO

(KMP)

201.49 160.32 25.68 201.49 : 2.17

2. Sh. Akshat Jain Wholetime

Director

119.49 NA. N.A. 119.49 : 2.17

3. Sh. S.C. Singhal Company

Secretary (KMP)

33.67 29.56 13.90 N.A.

4. Sh. N.K.

Maheshwari

Chief Financial

Officer (KMP)16.92 12.07 40.18 N.A.

371.57 201.95 83.99

ii) The percentage of median remuneration of employees of the Company during the financial year was 33.95%.

iii) There were 259 permanent employees on the rolls of the Company as on March 31, 2019;

iv) Average percentage increase made in the salaries of employees other than the managerial personnel in the

current financial year i.e. 2018-19 was 9.00% whereas the increase in the managerial remuneration for the same financial year was 25.68%.

v) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial

Personnel and other Employees.

18


DIRECtORS & KEY MANAGERIAL PERSONNEL (KMP)

Sh. Sushil Jain, Sh. S.C. Singhal and Sh. Naresh Kumar Maheshwari are the Chief Executive Officer (CEO), Company Secretary and Chief Financial Officer (CFO) of the Company respectively.

Pursuant to the provisions of Section 152 of the Companies Act, 2013, Sh. Akshat Jain, Wholetime Director,

will retire at the forthcoming Annual General Meeting and being eligible offers himself for re-appointment.

Pursuant to Section 149 and other applicable provisions of the Companies Act, 2013, your Directors are seeking

re-appointment of Mr. Sanjeev Goel and Mrs. Neena Jain as Independent Directors for the second term of five consecutive years each upto 31st March, 2024 and 30th September, 2024 respectively and Mr. Arun Kumar

Garg as Independent Director for the second term of two consecutive years upto 31st March, 2021. Details of

the proposal for re-appointment of Mr. Sanjeev Goel, Mrs. Neena Jain and Arun Kumar Garg are mentioned

in the Explanatory Statement under Section 102 of the Companies Act, 2013 of the Notice of the 29th Annual

General Meeting.

The Company has received declaration from all the Independent Directors confirming that they meet with

the criteria of Independence as prescribed both under sub-section (6) of Section 149 of the Companies Act,

2013.

INFORMAtION REQUIRED UNDER SEXUAL hARASSMENt OF WOMEN At WORKPLACE (PREVENtION

PROhIBItION & REDRESSAL) ACt, 2013

The Company has a policy against sexual harassment and a formal process for dealing with complaints

of harassment or discrimination. The Company seeks to ensure that all such complaints are resolved

within defined timelines. During Financial Year 2018-19, the Company has not received any complaint. The Company is conducting workshops/awareness programs on prevention of sexual harassment from time to

time.

PERSONNEL

Cordial Industrial relations continue to prevail thereby further strengthening employees’ commitment to the

growth of the Company.

The Board wishes to express its deep appreciation to all sections of the Employees for their whole hearted

efforts, co-operation and outstanding contribution to the growth of the Company during the year.

Particulars of employees as required under the provisions contained in Rule 5(2) and rule 5(3) of Companies

(Appointment and Remuneration of Managerial Personnel) Rules, 2014 form part of this Report. However, the

information is not being sent alongwith the Annual Report as per proviso of section 136 of the companies act,

2013. Any shareholder interested in obtaining such particulars may write to the Company at its Corporate/

Registered Office.

ENERGY, tEChNOLOGY & FOREIGN EXChANGE

Additional information to the extent applicable on conservation of energy, technology absorption, foreign

exchange earning and outgo is required to be disclosed in terms of Section 134 (3) (m) of the Companies Act,

2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, is given as Annexure ‘A’ and forms part of this report.

MANAGEMENt’S DISCUSSIONS AND ANALYSIS REPORt

Management’s Discussion and Analysis Report for the year under review as stipulated under Regulation 34

of SEBI (LODR) Regulations, 2015, is presented in a separate section forming part of the Annual Report as

Annexure-4.

19


DISCLOSURES UNDER LIStING AGREEMENt

Your Company is now listed only with BSE Limited. The Company is regular in paying the listing fees on demand

and it has paid fee upto the current financial year.

DEMAtERIALISAtION OF SECURItIES

As informed earlier, the shares of your Company were included in the compulsory list for trading in

dematerialization form with effect from 30.10.2000 and your company had entered into necessary agreements with both the Depositories i.e. NSDL (National Securities Depository Limited) and CDSL (Central Depository

Securities Limited). It is, therefore, advisable to trade in the shares of the company in dematerialization form

which is convenient and safe.

CORPORAtE GOVERNANCE

In terms of Regulation 4 of SEBI (LODR) Regulations, 2015, a Report on Corporate Governance alongwith a

certificate from the Auditors of the Company on the compliance of the conditions of Corporate Governance is provided in this Annual Report as Annexure -5.

ACKNOWLEDGEMENt

Your Directors acknowledge the cooperation and assistance extended by various agencies of the Central and

State Governments, State Bank of India and its valued Customers. Your Directors also thank the shareholders for

their continued support. You Directors thank all the dedicated employees including executives for all their services

rendered to the Company.

For & on behalf of the Board

Place : New Delhi (SUShIL JAIN)

Date : 20th May, 2019 Chairman & Managing Director

20


ANNEXURE “A “ tO DIRECtORS’ REPORt

Information pursuant to Rule 8 of the Companies (Accounts) Rules, 2014

(A) Conservation of Energy

Regular Supervision and controls are being maintained in areas where steps have already been taken for the

conservation of energy.

(B) technology Absorption

1. Specific areas in which R&D carried out by the Company.

:: Development & Introduction of new Toners compatible for the upcoming

Photocopiers, digital machines & laser printers.

2. Benefits derived as a result of the above R&D.

:: Availability of extended range of products resulting in procurement &

servicing of orders for additional products in the export & domestic

markets.

3. Further plan of action :: Development of more toner formulations as well as their packaging.

:: Re-sourcing of some raw materials from other economical sources.

:: Import substitution of plant/machinery items by developing indigenous

ones for economy in working.

:: Development of Colour Toner formulations as well as their packaging.

4. Expenditure on R&D :: Charged under the respective head of accounts

Rs. 86.25 & Rs.9.71 Lacs on capital items.technology Absorption, Adaption and Innovation

1. Efforts in brief :: The technology & know-how given by the collaborator has been

absorbed. However, the Company is in constant touch with the

developments taking place worldwide in this field.2. Benefits derived :: Efficient plant operation, achieving international product quality,

self development of products and their packaging, substituting raw

materials for economical solutions.

(C) Foreign Exchange Earnings / Outgo

1. Activities Relating to Exports

Exports were higher by 14% during the year ending 31st March, 2019 as compared to 31st March, 2018.2. total Foreign Exchange used and earned

Rs. in Lacs

2018-2019 2017-2018

a) total Foreign Exchange used

i) Import of Raw Materials :: 4419.41 4497.99

ii) Import of Stores & Spares and Packing material :: 15.38 4.07

iii) Foreign Travel :: 17.95 23.08iv) Consultancy Charges :: NIL NIL

v) Others (Exhibition, Adv.) :: 55.03 8.50

tOtAL

------------

4507.77

=======

------------

4533.64

=======

b) total Foreign Exchange earned (on FOB basis) 3137.76 2740.09

21


Annexure 1 to Directors’ ReportForm No. MGt-9

EXtRACt OF ANNUAL REtURN

As on the financial year ended on 31.03.2019

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies

(Management and Administration) Rules, 2014]

I. REGIStRAtION AND OthER DEtAILS:

i) CIN L74993UP1990PLC015721

ii) Registration Date 09.01.1990

iii) Name of the Company Indian Toners & Developers Ltd.

iv) Category / Sub-Category of the Company Limited by Shares

v) Address of the Registered office and Contact Details

10.5 km, Milestone, Rampur- Bareilly Road,

Rampur – 244901 (U.P), India. Phone - 09219410588vi) Whether Listed Company Yes/ No. Yes–BSE Ltd.

vii) Name, Address and Contact Details of Registrar

and Transfer Agent, if any

Alankit Assignments Limited, 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi - 110 055.

Phone – 011-43541234, 42541234

II. PRINCIPAL BUSINESS ACtIVItIES OF thE COMPANY

All the business activities contributing 10% or more of the total turnover of the Company shall be stated:

Sr. No. Name and Description of main products /

services

NIC Code of the

Products/service

% to total turnover of the

Company

1. Toner for Photocopier & Photo Imaging 3090 100%

III. PARtICULARS OF hOLDING, SUBSIDIARY AND ASSOCIAtE COMPANIES:

S.

No.

NAME AND ADDRESS OF thE

COMPANY

CIN/GLN hOLDING /

SUBSIDIARY /

ASSOCIAtE

% OF

ShARES

hELD

Applicable

Section

1. Indian Toners USA Company

7401 Wiles Road Suite#123 Coral

Springs, FL 33067

P16000051041 Wholly Owned

Subsidiary

100% 2(87) of the Companies Act,

2013

iv) Share holding Pattern (Equity Share Capital Breakup as percentage of total equity)

i) Category-wise Share Holding

Category of Shareholders No. of Shares held at the beginning

of the year 01.04.2018

No. of Shares held at the end


%

Change

during

the year

Demat Physical total % of

total

Shares


total

Shares

A. Promoters

(1) Indian

a) Individual/HUF 9109286 0 9109286 69.211 9114526 0 9114526 69.250 +0.039

b) Central Govt. 0 0 0 0 0 0 0 0 0

c) State Govt.(s) 0 0 0 0 0 0 0 0 0

d) Bodies Corp. 0 0 0 0 0 0 0 0 0

22



total

Shares


total

Shares

e) Bank / FI 0 0 0 0 0 0 0 0 0

f) Any Other 0 0 0 0 0 0 0 0 0

Sub-total(A)(1) : 9109286 0 9109286 69.211 9114526 0 9114526 69.250 +0.039

(2) Foreign

a) NRIs-Individuals 0 0 0 0 0 0 0 0 0

b) Other-Individuals 0 0 0 0 0 0 0 0 0

c) Bodies Corp. 0 0 0 0 0 0 0 0 0

d) Bank / FI 0 0 0 0 0 0 0 0 0

e) Any Other… 0 0 0 0 0 0 0 0 0

Sub-total(A)(2) : 0 0 0 0 0 0 0 0 0

total Shareholding of

Promoter (A) = (A)(1)+(A)

(2)

9109286 0 9109286 69.211 9114526 0 9114526 69.250 +0.039

B. Public Shareholding

1. Institutions

a) Mutual Funds 0 3200 3200 0.02 0 3200 3200 0.02 0

b) Banks/ FI 0 0 0 0 0 0 0 0 0

c) Central Govt. 0 0 0 0 0 0 0 0 0

d) State Govt.(s) 0 0 0 0 0 0 0 0 0

e) Venture Capital

Funds

0 0 0 0 0 0 0 0 0

f) Insurance

Companies

0 0 0 0 0 0 0 0 0

g) FIIs 0 0 0 0 0 0 0 0 0

h) Foreign Venture

Capital Funds

107 0 107 0 0 0 0 0 0

i) Others (specify) 0 0 0 0 0 0 0 0 0

Sub-total (B)(1) :- 107 3200 3307 0.02 0 3200 3200 0.02 (-).00

2. Non-Institutions

a) Bodies Corp.

i) Indian 442646 12700 455346 3.45 406708 12700 419408 3.18 (-)0.27

ii) Overseas 0 0 0 0 0 0 0 0 0

b) Individuals

i) Individual

Shareholders

holding

nominal

Share

Capital upto

Rs.2 Lakh

1991147 984434 2975581 22.60 2156666 896312 3052978 23.19 (+)0.59

ii) Individual

Shareholders

holding

Share

Capital in

excess of

Rs.2 Lakh

334821 0 334821 2.54 360077 0 360077 2.73 (+)0.19

23



total

Shares


total

Shares

c) Other (Specify)

1. Directors 2628 0 2628 0.01 2628 0 2628 0.01 0

2. Non Resident

Indian

155114 300 155414 1.18 93012 300 93312 0.70 (-)0.47

3. Clearing

Members

11729 0 11729 0.08 9885 0 9885 0.07 (-)0.01

4. Hindu Undivided

Families

113498 0 113498 0.86 105002 0 105002 0.79 (-)0.07

5. Trust 0 0 0 0 594 0 594 0.00 0.00

Sub-total(B)(2) 3051583 997434 4049017 30.76 3134572 909312 4043884 30.72 (-)0.04

total Public of

Shareholding

(B)=(B) (1)+(B)(2)

3051690 1000634 4052324 30.78 3077502 912512 4047084 30.74 (-)0.03

C. Shares held by

Custodian for GDRs

& ADRs

0 0 0 0 0 0 0 0 0

Grand total (A+B+C) 12160976 1000634 13161610 100.00 12249098 912512 13161610 100.00 0.000

(ii) Shareholding of Promoters

Sl.

No.

Shareholder’s name Shareholding at the beginning of the

year 01.04.2018

Shareholding at the end of the year

31.03.2019

No. of

Shares

% of total

Shares

of the

Company

% of Shares

Pledged/

encumbered

to total

Shares

No. of

Shares

% of total

Shares

of the

Company

% of Shares

Pledged /

encumbered

to total

shares

%

change

in share

holding

during

the year

1. Sushil Jain/ Nandita Jain 4523168 34.37 NIL 4528408 34.41 NIL 0.04

2. Devanshi Jain 100 0.00 NIL 100 0.00 NIL 0

3. Sushil Jain (HUF) 182600 1.39 NIL 182600 1.39 NIL 0

4. Aashima Jain 1143756 8.69 NIL 1143756 8.69 NIL 0

5. Nandita Jain 1860255 14.13 NIL 1860255 14.13 NIL 0

6. Akshat Jain 1399407 10.63 NIL 1399407 10.63 NIL 0

total 9109286 69.21 NIL 9114526 69.25 NIL 0.04

(iii) Change in Promoter’s Shareholding (Please specify, if there is no change)

Sr. No. Shareholding at the beginning of the

year 01.04.2018

Cumulative Shareholding during the year

31.03.2019

Sr. No. Shareholder’s Name No. of Shares % of total shares of

the Company

No. of Shares % of total Shares

of the Company

1. Sushil Jain/ Nandita Jain 4523168 34.37 4528408 34.41

2. Devanshi Jain 100 0.00 100 0.00

3. Sushil Jain (HUF) 182600 1.39 182600 1.39

4. Aashima Jain 1143756 8.69 1143756 8.695. Nandita Jain 1860255 14.13 1860255 14.13

6. Akshat Jain 1399407 10.63 1399407 10.63

9109286 69.21 9109286 69.25

24


(iv) Shareholding pattern of top ten Shareholders (other than Directors, Promoters and holders of GDRs

and ADRs):

Sr.

No.

For Each of the top 10

Shareholders

Shareholding at the beginning


Cumulative Shareholding

during the year 31.03.2019

No. of Shares % of total

Shares of the

Company


Shares of the

Company

1. Subramanian P

IN300131 320493031

At the beginning of the year.

At the end of the year

242350 1.84

242350 1.84

2. Dinero Wealth Pvt. Ltd.

IN302269 14503262



245539 1.87

241800 1.84

3. Dheeraj Kumar Lohia

18800 1201880000001155



----- -----

46426 0.35

4. Shaktiman Steel Casting Pvt. Ltd.

IN302927 10182317



35000 0.27

35000 0.27

5. Pratik Nowlakha

IN300214 10657301



24359 0.19

26159 0.20

6. Anup Pratapsingh Maheshwari

IN 301549 - 53053487


At the end of the year----- -----

21795 0.17

7. SPt Investment Advisory

Services Pvt. Ltd

44700 1204470003600975



----- -----

17770 0.14

8. Jatin Dhirubhai Shah

81600 1208160001329881



----- -----

17032 0.13

9. Saurabh Goel

IN 302902 - 49747365



----- -----

16312 0.12

10. Kamaljeet Kaur

20600 1202060000814937



----- -----

15579 0.12

25


(v) Shareholding of Directors and Key managerial Personnel:

Sr.

No.

Shareholding at the

beginning of the year

01.04.2018

Cumulative Shareholding

during the year 31.03.2019

For Each of the Directors and KMP No. of

Shares

% of total

shares of the

Company


Shares of the

Company

Shareholding of Key Managerial

Personnel

1. Shri Sushil Jain



4523168 34.37

4528408 34.41

2. Sh. Akshat Jain

At the beginning of the year


1399407 10.63

1399407 10.63

3. Shri S.C. Singhal



109 0.00

109 0.00

Shareholding of Directors:

1. Shri Sanjeev Goel



2628 0.019

2628 0.019

V. INDEBtENDNESS

Indebtedness of the Company including interest outstanding / accrued but not due for payment

Secured Loans

excluding deposits

Unsecured

Loans

Deposits total

Indebtedness

Indebtedness at the beginning

of the financial yeari) Principal Amount NIL NIL NIL NIL

ii) Interest due but not paid NIL NIL NIL NIL

iii) Interest accrued but not due NIL NIL NIL NIL

total (i+ii+iii) NIL NIL NIL NIL

Change in Indebtedness during

the financial year• Addition NIL NIL NIL NIL

• Reduction NIL NIL NIL NIL

Net Change NIL NIL NIL NIL

Indebtedness at the end of the

financial yeari) Principal Amount NIL NIL NIL NIL

ii) Interest due but not paid NIL NIL NIL NIL

iii) Interest accrued but not due NIL NIL NIL NIL

total (i+ii+iii) NIL NIL NIL NIL

26


VI. REMUNERAtION OF DIRECtORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and / Manager

Sr.

No.

Particulars of Remuneration Name of MD/WtD/ Manager total Amount

1. Gross Salary Sh. Sushil Jain Sh. Akshat Jain

(a) Salary as per provisions contained in section

17(1) of the Income – Tax Act, 1961

16673659 9930820 26604479

(b) Value of perquisites u/s 17(2) Income – Tax

Act, 1961

540835 326800 867635

(c) Profits in lieu of salary under section 17(3) Income – Tax Act, 1961 0 0

2. Stock Option --- ---

3. Sweat Equity --- ---

4. Commission --- ---

- As % of profit --- ---

- Others, specify… --- ---

5. Others, please specify (Employers PF Contribution,

LTA & Medical Reimbursement)

2934601 1691733 4626334

total (A) 20149095 11949353 32098448

Ceiling as per the Act *

*The payments are as per Schedule and as per the Section 197 of the Companies Act, 2013.

B. Remuneration to other Directors:

Sr. No. Particulars of Remuneration total Amount

1 Independent Directors Sh. Sanjeev

Goel

Sh. Arun

Kr. Garg

Smt. Neena

Jain

Fee for attending Board /

Committee meetings 110000 105000 55000 270000

Commission -- --- -- ---

Other, Please specify -- --- -- ---

total (1) 110000 105000 55000 270000

2 Other Non- Executive Directors -- -- --- ---

. Fee for attending Board /

Committee meetings

-- -- --- ---

. Commission -- -- --- ---

Other, Please specify --- --- --- ---

total (2) --- --- --- ---

total (B)=(1+2) 110000 105000 55000 270000

Total Managerial Remuneration

Overall Ceiling as per the Act *

*The payments are as per Schedule and as per the Section 197 of the Companies Act, 2013.

27


C. REMUNERAtION tO KEY MANAGERIAL PERSONNEL OthER thAN MD/MANAGER/WtD

Sr.

No.

Particulars of Remuneration Key managerial Personnel

CEO Company

Secretary

CFO total

1. Gross Salary

(a) Salary as per provisions contained in section

17(1) of the Income – Tax Act, 1961

-- 2934820 1680489 4368464

(b) Value of perquisites u/s 17(2) Income – Tax

Act, 1961

-- -- -- –

(c) Profits in lieu of salary under section 17(3) Income – Tax Act, 1961

-- -- -- –

2. Stock Option -- -- -- --

3. Sweat Equity -- -- -- --

4. Commission -- -- -- --

- as % of profit -- -- -- –

- others, specify… -- -- -- –

5. Others, please specify

(Employer’s PF Contribution,

LTA & Medical Reimbursement)

-- 432000 11077 443077

total -- 3366820 1691566 4811541

VII. PENALItIES / PUNIShMENt / COMPOUNDING OF OFFENCES: NIL

type Section of the

Companies

Act

Brief

Description

Details of

Penalty/

Punishment/

Compounding

fees imposed

Authority

[RD/NCLt/

COURt]

Appeal made,

if any

(give Details)

Penalty --- --- --- --- ---

Punishment --- --- --- --- ---

Compounding --- --- --- --- ---

--- --- ---

C. OthER OFFICERS IN DEFAULt

Penalty --- --- --- --- ---

Punishment --- --- --- --- ---

Compounding --- --- --- --- ---

28


Annexure - 2 to Directors’ Report

29


30


31


32


Annexure - 3 to Directors’ Report

ANNUAL REPORt ON CORPORAtE SOCIAL RESPONSIBILItY (CSR) ACtIVItIES

1. A brief outline of the company’s CSR policy, including overview of projects or programs proposed to

be undertaken and a reference to the web-link to the CSR policy and projects or programs.

CSR policy of the Company was approved by the Board of Directors on 21.05.2014.

Corporate Social Responsibility (CSR) is a concept which integrates the company’s business objectives with

social and environmental concerns while interacting with their stakeholders.

To pursue these objectives we will continue:

To lay down guiding principles to ensure strong corporate culture which emphasizes on integrating CSR

values with Business Objectives.

To do business by adding value to the community and society on a sustainable basis through dedicated

policies, institutional setup and engagement process to promote inclusive growth.

To practice the Company’s corporate values through its commitment to grow in a socially and

environmentally responsible manner.

The Company shall give preference to the local area and areas around it where it operates.

Web Link:

http://www.indiantoners.com/page/stock-exchange-compliances/corporate-governance.aspx

2. Composition of CSR committee

Name of the Member Designation

Sh. Sanjeev Goel Chairman

Sh. Sushil Jain Member

Sh. Arun Kumar Garg Member

3. Average net profit of the company for last three financial years:

Average net profit: Rs.2065.03Lakhs

4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above)

The company was required to spend Rs.41.30 Lakhs during the year

5. Details of CSR spent for the financial year :

a) Total amount spent for the financial year : Rs.41.30 Lakhs

b) Amount unspent if any : Nil

c) Manner in which the amount spent during the financial year is detailed below:

33


(1) (2) (3) (4) (5) (6) (7) (8)

S.

No.

CSR Project

or activity

identified

Sector in

which the

Project is

covered

Project

Programs

(1) Local Area

or Other

(2) Specify

the State and

District where

projects or

programs was

undertaken

Amount

outlay

(budget

project or

program

wise)

Amount spent

on the project

or program

Sub heads:

(1) Direct

expenditure

on projects or

programs

(2) Overheads

Cumulative

expend-

itureupto the

reporting

period

Amount

Spent : Direct

or through

implementing

agency

1. Prime Minister

National Relief

Fund

Govt. N.A. N.A. N.A. N.A. 3650000

2. Adoption

of Primary

School

As per

direction of

Uttrakhand

State Govt.

Sitarganj,

Uttrakhand

N.A. N.A. N.A. 350000

3. Udayan Care Girls Education Aurangabad N.A. N.A. N.A. 130000

total 4130000

6. In case the company has failed to spend the two per cent of the average net profit of the last three financial years or any part thereof, the company shall provide the reason for not spending the amount in its Board Report :Not Applicable

7. A responsibility Statement of the CSR Committee that the implementation and monitoring of CSR

policy, is in compliance with CSR Objectives and policy of the company.

CSR Committee hereby certify that the implementation and monitoring of CSR policy, is in compliance with

CSR Objectives and policy of the company

For Indian Toners & Developers Limited

(Sanjeev Goel) (Sushil Jain)

Chairman of CSR Committee Chairman & Managing Director

34


INDUStRY AND OUtLOOK

The Company manufactures Compatible Toners for

Photocopiers, Laser Printers and Digital Multi-function

printers. The Industry is continuously being affected by the clandestine import of Toners.

The long term aim of the Company is to strengthen its

established brand image by offering customers quality products at reasonable prices. The aim of the Quality

Policy of the Company is to provide satisfaction to its

customers. To achieve this, the Company is committed

to develop, produce and market products that cater

continuously to the need and expectations of customers

and giving the Company competitive advantage. The

R & D team of the Company is giving good results as

the Company has developed several new products at

competitive prices which helps in facing competition and

boosting export.

KEY StRENGthS:

ITDL - SUPREMO the flagship brand of the Company for toner products has a strong presence in the market

and a high recall among customers. The products have

a reputation of being highly superior quality.

A dedicated team of engineers and scientists always

strive to improve on existing products or to create new

products. They also ensure quality control.

A wide distribution network of more than 120 exclusive

distributors, and 600 exclusive retail dealers.

A dedicated customer care team for prompt and quality

after-sales service, informing customers about new

technologies and helping them choose products based

on their specific needs through scientific analysis.

A team of highly qualified professionals and top management who tirelessly work to maintain quality and

enhance customer satisfaction.

RISKS & CONCERNS

Risk of heightened competitive activity from existing

players at home and overseas.

Since more than 95% raw materials of the Company is imported, Foreign Exchange fluctuations, increase in oil prices and international freight etc. may have adverse

impact on the cost of manufacture of the Co.’s products.

The Company’s ability to pass on the cost increase

by corresponding increase in the selling prices of its

products is a constrain due to tough competition.

MItIGAtION

The Company invests in technology to ensure it stays

ahead of competition.

Continuous focus on R&D has led to development of

innovative products and use of scientific analysis to assist customers in choosing right products.

To take share from unorganized Market also, the

Company keeps on launching competitively Priced

Toners from time to time.

The Company procures its key raw materials in bulk

quantity leveraging its huge scale of operations. This

helps it to source the raw materials at most competitive

rates.

The Company enjoys long-standing relationship with

large suppliers ensuring unhindered supply of materials

at competitive rates.

OPPORtUNItIES & thREAtS

Exports present a big opportunity for the Company

for increasing the capacity utilisation and improving

profitability. The Company has taken several steps to increase its presence in many countries.

In order to cover the untapped markets of North and

South America, your Company has incorporated a

Wholly Owned Subsidiary of the Company in the State

of Florida (USA). However, so far the results are not as

per expectations but all out efforts are being made to improve the same.

On the domestic front also, there is an opportunity to

further increase the market share because of the well-

established brand image.

Risk of imports of low priced toners coming into the

domestic market has always been there.

ANNEXURE - 4 tO DIRECtORS’ REPORt

MANAGEMENt DISCUSSIONS AND ANALYSIS REPORt

35


QUALItY :

ITDL has continuously invested in processes, people,

training, information systems, quality standards,

frameworks, tools and methodologies to mitigate the

risks associated with Toner Trade. Adoption of quality

models and practices for processes have ensured that

risks are identified and mitigated at various levels in the planning and execution process.

SEGMENt-WISE OR PRODUCt - WISE

PERFORMANCE

There is only one segment in the company i.e.

manufacturer of toner.

DISCUSSION ON FINANCIAL PERFORMANCE

The revenue from operations for the year were Rs.

11548 Lacs. The Company earned a profit before tax of Rs. 2517 Lacs. This does not include the sales

and profit of the wholly owned subsidiary Company. However, the consolidated revenue from operations

and profit before tax for the year are Rs. 11529 Lacs and Rs. 2469 Lacs respectively. The nearly debt free

status of both the holding and wholly owned subsidiary

Company and improved liquidity resulted in significantly lowering the finance cost.

For the Financial Year 2018-2019, the Board has recommended a final dividend of Rs. 1.50 per equity share (15% of face value of Rs. 10) in addition to the Interim Dividend of Rs. 1.50 per equity share

(15% of face value of Rs. 10) declared in November,

2018.

INtERNAL CONtROL SYStEM AND thEIR

ADEQUACY

The Company has proper and adequate Internal Control

System to ensure that its assets are safeguarded and

that transactions are properly authorized, reported and

recorded. The Company has also a system of internal

audit and management reviews to ensure compliance

with the prescribed procedures and authority levels and

compliance with all rules, regulations and guidelines

of the various Authorities.

MAtERIAL DEVELOPMENt IN hUMAN

RESOURCES/INDUStRIAL RELAtION FRONt,

INCLUDING NUMBER OF PEOPLE EMPLOYED

Industrial relations remained cordial during the year.

The total number of employees as on 31.03.2019 was

259 nos.

DISCLOSURE OF ACCOUNtING tREAtMENt

The financial statements of the Company have been prepared to comply in all material respects with the

accounting standards notified under Section 133 of the Companies Act, 2013, and other accounting principles

generally accepted in India. The management accepts

responsibility for the integrity and objectivity of these

financial statements, as well as for various estimates and judgments used therein. The estimates and

judgments relating to the financial statements have been made on a prudent and reasonable basis, so

that the financial statements reflect in a true and fair manner the form and substance of transactions, and

reasonably present the state of affairs, profits and cash flows for the year.

36


ANNEXURE 5 tO thE DIRECtORS’ REPORt

CORPORAtE GOVERNANCE REPORtAs required under Regulation 34 of SEBI (LODR) Regulations, 2015

A. MANDAtORY REQUIREMENtS

1. Company’s Philosophy on Corporate Governance

Corporate Governance to Indian Toners & Developers Limited means not only compliance with the provisions

of Company Law, allied Acts and listing agreement but also directors’ responsibility to work with morality,

ethics, transparency and accountability towards all the stakeholders for their acts and decisions.

The Company aims at conducting its business efficiently, by following professionally acknowledged good governance policies and thus meeting its obligations to all stakeholders in a balanced, transparent and

accountable manner and its policies are aimed towards creation of Shareholders value in terms of long term

sustainability of the Company’s business including of its wholly owned Subsidiary Company.

2. Composition of Board of Directors as on 31st March, 2019

a) The Board of Directors has a mix of Executive and Non-Executive Directors. The Board comprises of 2

Executive Director, 3 Non-Executive Independent Directors including a woman director. Accordingly, the

composition of the Board meets the stipulated requirements.

Name of the

Directors

Category No. of

Equity

Shares

held as on

31.03.2019

Attendance

Particulars

No. of other Directorships

and Committee Memberships

/ Chairmanships

Committees

Board

Meetings

Last

A G M

Other

Director

Ships*

Member

Ships

Chairman

Ships

Sh. Sushil Jain CMD# 4528408 4 Not Present – -- --

Sh. Akshat Jain WTD## 1399407 4 Present – – --

Sh. Sanjeev Goel NED-I 2628 4 Present – -- --

Sh. Arun Kumar Garg NED-I NIL 5 Not Present 5 -- --

Ms. Neena Jain NED-I NIL 1 Not Present 1 -- --

* Directorship in Private Limited Companies is included in the above table

# Chairman & Managing Director

## Whole Time Director w.e.f. 01.04.2018NED-I Non Executive Director - Independent,

During the Year 2018 - 2019 the Board of Directors met 4 times on 17.05.2018, 23.07.2018, 03.11.2018

and 11.02.2019.

3. Committees of the Board

A. Audit Committee

The purpose of the Audit Committee is to ensure the objectivity, credibility and correctness of the Company’s

financial reporting and disclosure process, internal controls, risk management policies and processes, tax

37


policies, compliance and legal requirements and associated matters. The Audit Committee consists of

three Directors, out of three two are Independent Directors and one is executive director:

Shri Sanjeev Goel is the Chairman of the Audit Committee. The other members of the Committee are

Shri Arun Kumar Garg and Shri Sushil Jain.

The gist of terms of reference of the Audit Committee is as follows:

1. Regular review of accounts, accounting policies, disclosures, etc. and to ensure that the financial statements are correct, sufficient and credible.

2. Recommendation for Appointment and fixation of remuneration of Statutory and Internal Auditors.

3. Review of the major accounting entries based on exercise of judgment by management and review

of significant adjustments arising out of audit.

4. To review qualifications, if any, in the draft audit report.

5. Establishing and reviewing the scope of the independent audit including the observations of the

auditors and review of the quarterly, half yearly and annual financial statements before submission to the Board.

6. Conducting post audit discussions with the independent auditors to ascertain any area of

concern.

7. Establishing the scope of and frequency of internal audit, reviewing the findings of the internal auditors and ensuring the adequacy of internal control systems.

8. To look into the matters pertaining to the Directors’ Responsibility Statement with respect to compliance with Accounting Standards and accounting policies.

9. Compliance with Stock Exchange legal requirements concerning financial statements, to the extent applicable.

10. To review the related party transactions i.e., transactions of the Company of material nature, with

promoters or management their subsidiaries or relatives etc. that may have potential conflict with the interests of Company at large and are at arm’s length.

11. Evaluation of internal financial controls and risk management systems

12. Such other matters as may from time to time be required by any statutory, contractual or other

regulatory requirements to be attended to by the Audit Committee such as Whistle Blower Policy

or complaints thereunder.

The Audit Committee met 4 times during the year on 17.05.2018, 23.07.2018, 03.11.2018 and 11.02.2019

to deliberate on the aforesaid matters. The Minutes of the meetings are placed before the Board at the

succeeding Board Meeting for information.

Details of the attendance of Members are given below:

Sr. No. Name of Members No. of Meetings

held Attended

1. Shri Sanjeev Goel 4 4

2. Shri Arun Kumar Garg 4 4

4. Shri Sushil Jain 4 4

Sh. S.C. Singhal, Company Secretary acts as the Secretary to the Audit Committee.

38


4. Nomination and Remuneration Committee

Brief Description of terms of reference.

- To review, assess and recommend the appointment of Managing/Wholetime Directors.

- To periodically review the remuneration package of working Directors and Senior Management Personnel

and recommend suitable revision to the Board.

Composition and Attendance at the Meeting

The Nomination and Remuneration Committee comprises of two independent Directors and one Executive

Director viz. Shri Sanjeev Goel, Shri Arun Kumar Garg and Shri Sushil Jain. Shri Sanjeev Goel is the

Chairman of the Nomination and Remuneration Committee. Smt. Neena Jain, Independent Director has also

been appointed as member of the Nomination & Remuneration Committee w.e.f. 11.02.2019.

Details of the attendance of Members are given below:

Sr. No. Name of Members No. of Meetings

held Attended

1. Shri Sanjeev Goel 2 2

2. Shri Arun Kumar Garg 2 2

3. Shri Sushil Jain 2 2

Sh. S.C. Singhal, Company Secretary acts as the Secretary to the Nomination and Remuneration

Committee.

The Committee met 2 times during the year on 14.08.2018 and 04.02.2019 where all the members were present.

The Remuneration paid to Executive Directors and relatives of Directors, if any is reviewed / recommended

by the Nomination and Remuneration Committee, approved by the Board and is within the limits set by the

shareholders at Annual General Meetings. The remuneration package of Chairman and Managing Director

and Wholetime Director comprises of salary, prerequisites and allowances and contributions to Provident

and other Funds. The Remuneration Policy is directed towards rewarding performance, based on review of

achievements. It is aimed at attracting and retaining high caliber talent. Non-Executive Directors are not paid

any remuneration except sitting fees.

Remuneration to Chairman & Managing Director and Wholetime Director is subject to review and recommendation

by the Nomination and Remuneration Committee to the Board and thereafter approved by shareholders in

General Meeting.

Presently, the Company does not have any stock option plan or performance linked incentives for its

Directors.

PERFORMANCE EVALUAtION

Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) of SEBI (LODR) Regulations,

2015, a separate exercise was carried out to evaluate the performance of the Board by every director. The

performance evaluation of all the Directors individually was carried out by the entire Board. The performance

evaluation of the Chairman was carried out by the Independent and Non-independent Directors. The board

also carried out annual performance evaluation of the working of its Audit, Nomination and Remuneration,

Corporate Social Responsibility and Stakeholders Relationship Committees. The Directors expressed their

satisfaction with the evaluation process.

39


Details of remuneration to Directors paid / payable during the period from 01.04.2018 to 31.03.2019 to

Directors:

(Amount in Rs.)

Name of

Directors

Salary

Including

Personal

Pay

hRA Arrear Commission Perquisites

&

Contribution

to PF

Sitting Fee

(Meeting)

total

Board Committee

Sh. Sushil Jain* 10409274 6245565 ----- ----- 3494256 ----- ----- 20149095

Sh. Akshat Jain** 6000000 3600000 ----- ----- 2349353 ----- ----- 11949353

Sh. Sanjeev Goel ----- ----- ----- ----- ----- 50000 60000 110000

Sh. Arun Kumar

Garg

----- ----- ----- ----- ----- 50000 55000 105000

Ms. Neena Jain ----- ----- ----- ----- ----- 50000 5000 55000

* Chairman & Managing Director ** Wholetime Director

5. Stakeholders’ Relationship Committee

terms of Reference

The Board constituted a Shareholders / Investors Grievance Committee on 31.05.2002 which was renamed

as Stakeholders’ Relationship Committee with effect from 21.05.2014 to comply with the provisions of Section 178 of Companies Act, 2013 to look into redressal of Shareholders/ Investors’ grievances like Transfer and Transmission of Shares, non-receipt of Balance Sheet & dividend and dematerialization of shares and matters

relating to share certificates, deletion of name, splitting & consolidation of shares and also to delegate any of its responsibilities, oversee the performance of the Registrar and Share Transfer Agents as well as recommend

suggestions to improve the Investors’ Services.

During the year 2018-2019, only one meeting of the committee was held on 30.03.2019.

During the Year 2018-2019, 6 complaints were received from Shareholders/Investors which were replied

suitably to their satisfaction. There was no complaint pending as at 31.03.2019.

All valid share transfers received during the year 2018-2019 have been acted upon by the Company. There

were no transfers pending as on 31.03.2019.

Constitution, Meeting & Attendance thereat:

The Stakeholders’ Relationship Committee Comprises of following Members with Shri Sanjeev Goel as

Chairman of the Committee. Smt. Neena Jain, Independent Director has also been appointed as member of

the Stakeholders’ Relationship Committee w.e.f. 11.02.2019.

Name of Members Committee Meetings

Category held Attended

Shri Sanjeev Goel N E D I* 1 1

Shri Sushil Jain E D (CMD)** 1 1

Smt Neena Jain NED I * 1 1

* Non Executive Independent Director, ** Executive Director (Chairman & Managing Director)

Sh. S.C. Singhal, Company Secretary acts as the Secretary to the Stakeholders’ Relationship Committee.

40


6. Share transfer Committee

The Share Transfer Committee Meeting is in existence from the inception of the Company. It comprises of

following members:

Name of Members Category Committee Meetings

held Attended

Shri Sushil Jain CMD 32 26

Shri S. C. Singhal Co. Secretary 32 32

Sh. N. K. Maheshwari CFO 32 30

Sh. S.C. Singhal, Company Secretary also acts as the Secretary to the Share Transfer Committee.

Every effort is made to clear share transfers / transmissions and split / consolidation requests within 15 days.

7. Corporate Social Responsibility (CSR) Committee

Pursuant to the provisions of Section 135 of the Companies Act, 2013, the Board constituted the Corporate

Social Responsibility (CSR) Committee on 21.05.2014 comprising of Shri Sanjeev Goel as the Chairman and

Shri Sushil Jain and Shri Arun Kumar Garg as other members.

The said committee has been entrusted with the responsibility of formulating and recommending to the Board,

a Corporate Social Responsibility (CSR) Policy indicating the activities to be undertaken by the Company,

monitoring the implementation of the framework of the CSR Policy and recommending the amount to be spent

on CSR activities.

Name of Members Category Committee Meeting

held Attended

Shri Sushil Jain E D (CMD)* 1 1

Shri Sanjeev Goel N E D I** 1 1

Shri Arun Kumar Garg N E D I** 1 1

During the year 2018-2019, only one meeting of the committee was held on 04.02.2019.

* Executive Director (Chairman & Managing Director),

** Non-Executive Director-Independent,

Sh. S.C. Singhal, Company Secretary acts as the Secretary to the Corporate Social Responsibility

Committee.

8. Independent Directors Meeting:

During the year under review, the Independent Directors met on 04.02.2019, inter alia, to discuss:

1. Review the performance of non-independent directors and the Board as a whole.

2. Review the performance of the Chairman of the company, taking into account the views of executive

directors and non-executive directors.

3. Assess the quality, quantity and timeliness of flow of information between the company management and the Board that is necessary for the Board to effectively and reasonably perform their duties.

All the Independent Directors were present at the meeting.

41


9. General Body Meetings

Details of last three Annual General Meetings (AGMs) held are given below

Financial Year Date time

2017 - 2018 31.07.2018 2.30 P.M.

2016 – 2017 31.07.2017 2.30 P.M.

2015 – 2016 30.08.2016 2.30 P.M.

All the aforesaid Annual General Meetings have been held at the Regd. Office of the Company. i.e. 10.5 km

Milestone; Rampur - Bareilly Road; Rampur - 244901 (Uttar Pradesh).

Following Special Resolutions were passed by the shareholders in the last three Annual General Meetings of

the Company:-

26th Annual General Meeting held on 30th August, 2016

No special resolution was passed.

During the year, following resolution with requisite majority was passed through postal ballot.

Approval for the Scheme of arrangement for amalgamation between ITDL Imagetec Limited (Transferor

Company 1), ABC Commercial Company Limited (Transferor Company 2), Alankar Securities Private

Limited (Transferor Company 3), Triveni Securities Private Limited (Transferor Company 4), Mahavir

Phototech Private Limited (Transferor Company 5) with Indian Toners and Developers Limited (Transferee

Company).


Company 1), ABC Commercial Company Limited (Transfer or Company 2), Alankar Securities Private

Limited (Transferor Company 3), Triveni Securities Private Limited (Transferor Company 4), Mahavir

Phototech Private Limited (Transferor Company 5) with Indian Toners and Developers Limited (Transferee

Company).

Votes in favour Votes in against

type of Voting Number

of

members

voting

Number of

votes cast

by them

% of total

number

of valid

votes cast

Number

of

members

voting

Number

of votes

cast by

them

% of total

number of

valid votes

cast

Voting through Postal

Ballot

69 35178 100 0 0 0

Voting through

Electronic Means

10 18047 100 0 0 0

total 79 53225 100 0 0 0

The above resolution was duly approved with requisite majority by the public shareholders of the

Company.

42



Company 1), ABC Commercial Company Limited (Transferor Company 2), Alankar Securities Private Limited

(Transferor Company 3), Triveni Securities Private Limited (Transferor Company 4), Mahavir Phototech Private

Limited (Transferor Company 5) with Indian Toners and Developers Limited (Transferee Company).

Votes in favour Votes in against

type of Voting Number of

members

voting

Number of

votes cast by

them

% of total

number of

valid votes

cast

Number of

members

voting

Number of

votes cast

by them

% of total

number of

valid votes

cast

Voting through

Postal Ballot

69 35178 100 0 0 0

Voting through

Electronic Means

20 4025377 100 0 0 0

total 89 4060555 100 0 0 0

The above resolution was duly approved with requisite majority by the shareholders of the Company.

The Board had appointed Mr. Varanasi Hari, Practicing Company Secretary as Scrutinizer for conducting the postal

ballot and e-voting process in a fair and transparent manner.

27th Annual General Meeting held on 31st July, 2017

1. Approval for re-appointment of Sh. Sushil Jain as Chairman & Managing Director of the Company for three

years w.e.f. 16.8.2017

28th Annual General Meeting held on 31st July, 2018

1. Approval for appointment of Sh. Akshat Jain as Wholetime Director of the Company for three years w.e.f.

1.4.2018 None of the businesses proposed to be transacted in the ensuing Annual General Meeting require special

resolution through postal ballot.

10. Information as to Directors who are to be appointed/re-appointed :

Mr. Akshat Jain, is a young and dynamic Industrialist and is associated with the Company since 01.03.2005

at different positions. He has more than 13 years’ experience to his credit in managing the affairs of Industrial Undertakings at top management levels. He has very efficiently and suitably managed the affairs of the Company at various levels from time to time. He is partner of Shrilon India LLP.

He holds 1399407 equity shares of the company.

Mr. Sanjeev Goel is a dynamic, Chartered Accountant of 60 years and in practice since February 1982 as a Sr. Partner in M/s. Goel, Garg & Co. He has 37 years experience to his credit with exposure in all fields relating to Audit, Accounts, Finance, Taxation, Business Rehabilitation & Restructuring.

He is holding 2628 shares of the Company.

Mr. Arun Kumar Garg is a dynamic, Chartered Accountant of 61 years and is in practice. Mr. Arun Kumar

Garg founded Arun K. Garg and Associates in the year 1985. The Principal offices of Arun K. Garg and Associates are at Delhi & Gurgaon and Associates all over the country. He has 36 years experience to his

credit with exposure in all fields relating to Audit, Accounts, Finance, Taxation, Business Rehabilitation & Restructuring.

43


He is not holding any shares of the Company.

Mrs. Neena Jain is a Chartered Accountant of 54 years and is in practice. Mrs. Neena Jain is a partner of

M/s Anil Ram Kumar & Co., Chartered Accountants, Delhi. She has 30 years’ experience to her credit with

exposure in project financing, banking, audit, secretarial, taxation, credit and cash flow management, financial due diligence, valuation and buy-back of shares. She is also a Director in M/s Best Bargain Finance Pvt.

Limited.

She is not holding any shares of the Company.

11. Materially Non – listed Subsidiaries : The Company has not any materially non – listed subsidiary. However, the

company has one wholly owned subsidiary namely Indian Toners USA Company in Florida (USA).

12. Disclosures of Non-compliances, Related Party transactions, if any

The company has not entered into any transaction of a material nature with the Promoters, the Directors or the

Management, their relatives etc. that may have any potential conflict with the interests of the company.

The company has complied with the requirements of the stock exchanges, SEBI and other statutory authorities

on all matters related to capital markets during the last three years. There were no penalties imposed nor any

structures issued on the Company by the Stock Exchanges, SEBI or any other statutory authority relating to the

above.

Details of Related Party transactions are disclosed in Note No. 41 of notes to the Financial Statements.

13. Means of Communication

- The Board of Directors of the Company approves and takes on record the quarterly, half yearly and yearly

financial results in the proforma and time prescribed by Regulation 33 of SEBI (LODR) Regulations, 2015.

- The approved financial results are forthwith sent to the Listed Stock Exchanges and are published in the newspapers namely Financial Express & Jansatta within forty - eight hours of approval thereof.

- The results are sent to the BSE Limited where the Shares of the company are listed by uploading the

results on its website at www.listing.bseindia.com.

- No formal presentations were made to the institutional investors and analysts during the year under

review.

- Management discussion and Analysis forms part of the Annual Report, which is posted to the Shareholders

of the Company.

14. CEO/CFO Certificate Certificate from CEO / CFO for the Financial Year ended March 31, 2019 has been provided elsewhere in the

Annual Report.

15. The Name and designation of the Compliance Officer is Sh. S. C. Singhal, Company Secretary ; e-mail ID : investors@ indiantoners.com

16. General Shareholders’ information

a). Next Annual General Meeting : As indicated in the Notice to our Shareholders, the Annual General Meeting

of the Company will be held on 31.07. 2019. The time and venue of the meeting is as indicated in the

notice.

b). Financial Year : April to March

c). Date of Book Closure : From 26.07.2019 to 29.07.2019 (both days inclusive)

d). Dividend payment : 15% (Final) & 15% (Interim)

44


e). Listing on Stock Exchanges :

BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 023

Annual Listing Fee for the year 2019-2020 has been paid to BSE Limited.

f). Stock Code

Bombay Stock Exchange Limited, Mumbai 523586 ISIN Number for NSDL/CDSL INE826B01018 g). Market Price Data : High, Low during each month in last financial year The monthly high and low quotations of Indian Toners’ equity shares traded on BSE during each

month in the previous financial year ended March 31, 2019 in comparison with BSE Sensex, are as follows

Month Share Price at BSE BSE Sensex

high (Rs.) Low (Rs.) high Low

April, 2018 271.00 235.00 35213 32972

May, 2018 259.90 199.80 35993 34302

June, 2018 222.00 171.00 35877 34784July, 2018 218.00 159.25 37644 35106

August, 2018 215.00 184.10 38989 37128September, 2018 209.95 160.05 38934 35985October, 2018 170.00 147.00 36616 33291

November, 2018 158.00 125.00 36389 34303

December, 2018 154.40 125.00 36554 34426

January, 2019 152.90 126.60 36701 35375

February, 2019 143.90 111.60 37172 35287March, 2019 152.45 131.25 38748 35926

[Source: www.bseindia.com]

Performance in comparison to broad-based indices such as BSE Sensex.

45


h) Share Transfer Procedure: Every effort is made to clear share transfers/ transmissions and split/ consolidation requests within 15 days.

Share Transfer Agents: Alankit Assignments Limited, 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi - 110 055.

Ph. No. (011) 43541234, 42541234, Fax No. (011) 42541967

i). Distribution Schedule : The distribution of Company’s shareholding as on 31st March, 2019 was as

follows:

No. of Equity Shares held Shareholders No. of Shares % of total sharesNo. (%)

1 to 250 14336 87.011 1367397 10.389251 to 500 1239 7.520 490706 3.728501 to 1000 512 3.108 408623 3.105

1001 to 2000 194 1.177 281954 2.142

2001 to 3000 74 0.449 184770 1.404

3001 to 4000 39 0.237 139483 1.060

4001 to 5000 18 0.109 87497 0.665

5001 to 10000 37 0.225 256578 1.949

10001 & Above 27 0.164 9944602 75.55816476 100.000 13161610 100.000

Shareholding Pattern as on 31st March, 2019

Category of Shareholder Number of Shares % age of total Shares

Promoter and Promoter Group (A) 9114526 69.25

Public Shareholding (B)

Mutual Funds/ UTI 3200 0.02

Trust 594 0.00

Bodies Corporate 419408 3.19

Director & Relative 2628 0.02

Individuals 3413055 25.93

Any Other

- NRIs 93312 0.71

- Clearing Members 9885 0.08

- HUF 105002 0.80

total Public Shareholding (B) 4047084 30.75

total Shareholding (A + B) 13161610 100.00

j). Dematerialization of Shares : Approximately 93.07 % of the total paid up share capital of the Company has been dematerialized upto 31.03.2019.

k) Prevention of Insider Trading : The Company has taken necessary steps to prevent Insider Trading

in terms of Securities Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 as

46


amended from time to time to ensure protection of general Shareholders rights and interests. The

Company Secretary is the Compliance officer in this regard. l). Outstanding GDR/ADR/Warrants or any convertible instruments, conversion date and impact on equity

: The Company has not issued any GDRs / ADRs / Warrants or any convertible instruments.

m). Plant Location of Unit 1: 10.5 K.M. Rampur-Bareilly Road, Rampur-244 901. Uttar Pradesh.

n) Plant Location of Unit 2 : D – II, Phase – II, Eldeco – Sidcul Industrial Park, Sitarganj – 262405, Distt.

Udham Singh Nagar, Uttarkhand

o). Address for correspondence: Sh. S. C. Singhal, Company Secretary, 1223, DLF Tower ‘B’, Jasola, New

Delhi –110 025. Ph. No. (011) 45017000

17. Details of shares transferred to Unclaimed Suspense Account

Particulars No. of

Shareholders

No. of

shares

Aggregate number of shareholders and the outstanding shares in the

suspense account lying at the beginning of the year;

60 9000

Number of shareholders who approached listed entity for transfer of

shares from suspense account during the year;

1 100

Number of shareholders to whom shares were transferred from suspense

account during the year;

1 100

Aggregate number of shareholders and the outstanding shares in the

suspense account lying at the end of the year;

59 8900

That the voting rights on these shares shall remain frozen till the rightful owner of such shares claims the

shares.

18. Disclosure of web links for Company’s Policies pursuant to Listing Regulations

i) The company has familiarized the independent directors with the company, their roles, rights,

responsibilities in the company, nature of the industry in which the company operates, business model

of the company, etc., through various programmes. The details of such familiarisation programmes have

been disclosed on the Company website at www.indiantoners.com under the heading “Familiarisation

Programmes for Independent Directors” on the page “Investor Relations”.

ii) The Company has formulated a policy for determining ‘material subsidiaries and such policy has been

disclosed on the Company website at www.indiantoners.com under the heading “Company Codes &

Policies” on the page “Investor Relations”.

iii) The Company has disclosed the policy on materiality of Related Party Transactions on its website

at www.indiantoners.com under the heading “Company Codes & Policies” on the page “Investor

Relations”.

B. Non-Mandatory Requirements :

The Executive Chairman of the company maintains an office at his residence for which the necessary expenses are reimbursed to him.

C. Code of Conduct: The Code of Conduct for Directors and Senior Management Personnel was approved and

adopted by the Company in the Board Meeting held on 31.10.2005 and annual compliance certificate from all the Directors and Senior Management Personnel of the Company is obtained.

47


CERtIFICAtE

The Annual Compliance Confirmation for compliance of the Code of Conduct for the year ending 31.03.2019 has been received from all the Directors and Senior management Personnel of the Company.

Place: New Delhi Sushil Jain

Date: 20.05.2019 Chairman & Managing Director

D. Compliance Certificate from the Auditors : The Company has obtained a certificate from the Statutory Auditors regarding compliance of conditions of Corporate Governance as stipulated in Schedule V of SEBI

(LODR) Regulations, 2015. The Certificate is annexed.

M.L. Garg & Co.,

CHARTERED ACCOUNTANTS

K – 60, 2nd Floor,

Connaught Place,

Opp. PVR Plaza

New Delhi – 110 001.

AUDItORS’ CERtIFICAtE ON COMPLIANCE OF CONDItIONS

OF CORPORAtE GOVERNANCE

tO thE MEMBERS OF INDIAN tONERS & DEVELOPERS LtD.

We have examined the compliance of conditions of corporate governance by INDIAN tONERS & DEVELOPERS

LtD. for the year ended on 31st March, 2019, as stipulated in Schedule V of SEBI (LODR) Regulations, 2015 of the

said company with stock exchanges in India.

The compliance of conditions of Corporate Governance is the responsibility of the Company’s management.

Our examination was limited to procedure and implementation thereof, adopted by the Company for ensuring the

compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the

financial statements of the company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the

Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned listing

agreements.

We further state that such compliance is neither an assurance as to the future viability of the company nor the

efficiency nor effectiveness with which the management has conducted the affairs of the company.

FOR M.L. Garg & Co.,

(Manish K Garg)

PARTNER

Date: 20.05.2019 CHARTERED ACCOUNTANTS

Place: New Delhi Membership No. 096238 ICAI’S FRN 001604N

48


CEO/CFO CertificateWe certify to the Board that:

(a) We have reviewed financial statements and the cash flow statement for the year and that to the best of our knowledge and belief:

(i) These statements do not contain any materially untrue statement or omit any material fact or contain

statements that might be misleading;

(ii) These statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.

(b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year

which are fraudulent, illegal or violative of the company’s code of conduct.

(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of the internal control systems of the company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these

deficiencies.

(d) We have indicated to the auditors and the Audit Committee that :

(i) there has not been any significant changes in internal control over financial reporting during the year under reference;

(ii) there has not been any significant changes in accounting policies during the year requiring disclosure in the notes to the financial statements; and

(iii) there has not been any instances during the year of significant fraud of which we had become aware and the involvement therein, if any, of the management or an employee having a significant role in the Company’s internal control system over financial reporting.

Date: 20.05.2019 (Sushil Jain) (N.K. Maheshwari)

Place: New Delhi Chairman & Managing Director Chief Financial Officer

49

INDIAN tONERS & DEVELOPERS LtD.INDEPENDENt AUDItOR’S REPORt

tO thE MEMBERS OF INDIAN tONERS &

DEVELOPERS LIMItED

REPORt ON thE AUDIt OF thE StANDALONE

FINANCIAL StAtEMENtS FOR thE YEAR ENDED

31St MARCh, 2019

1. Opinion

A. We have audited the accompanying Standalone

Financial Statements of Indian toners &

Developers Limited (“the Company”), which

comprise the Balance Sheet as at March 31,

2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement

of Changes in Equity and the Statement of Cash

Flows for the year then ended and a summary

of the significant accounting policies and other explanatory information.

B. In our opinion and to the best of our information

and according to the explanations given to us, the

aforesaid standalone financial statements give the information required by the Companies Act, 2013

(“the Act”) in the manner so required and give

a true and fair view in conformity with the Indian

Accounting Standards prescribed under section

133 of the Act read with the Companies (Indian

Accounting Standards) Rules, 2015, as amended

and other accounting principles generally

accepted in India, of the state of affairs (financial position) of the Company as at March 31, 2019,

the profit (financial performance including) other comprehensive income, changes in equity and its

cash flows for the year ended on that date.

2. Basis for Opinion

We conducted our audit in accordance with the

Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities

under those standards are further described in

the Auditor’s Responsibilities for the Audit of the

Standalone Financial statements section of our

report. We are independent of the Company in

accordance with the Code of ethical issued by the

Institute of Chartered Accountants of India (ICAI)

together with the independent requirements that

are relevant to our audit of the standalone financial

statements under the provisions of the Act and

the rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance

with these requirements and the ICAI’s Code of

Ethics. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our audit opinion.

3. Key Audit Matters

Key audit matters are those matters that, in our

professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed

in the context of our audit of the standalone

financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate

opinion on these matters. We have determined

that there are no matter which is required to be

described as key audit matter to be communicated

in our report.

4. Information Other than the Standalone Financial

Statements and Auditor’s Report thereon

A. The Company’s Board of Directors is responsible

for the preparation of the other information. The

other information comprises the information

included in the Management Discussion and

Analysis, Board’s Report including Annexures

to Board’s Report, Business Responsibility

Report, Corporate Governance and Shareholder’s

Information, but does not include the standalone

financial statements and our auditor’s report thereon. Our opinion on the standalone financial statements does not cover the other information

and we do not express any form of assurance

conclusion thereon.

B. In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether

the other information is materially inconsistent

with the standalone financial statements or our knowledge obtained during the course of our audit

or otherwise appears to be materially misstated.

If, based on the work we have performed, we

conclude that there is no material misstatement of

this other information, we are required to report

that fact. We have nothing to report in this regard.

50


5. Management’s Responsibility for the

Standalone Financial Statements

A. The Company’s Board of Directors is responsible

for the matters stated in section 134(5) of the Act

with respect to the preparation of these standalone

financial statements that give a true and fair view of the financial position, financial performance, including comprehensive income, changes in equity

and cash flows of the Company in accordance with the and other accounting principles generally

accepted in India. This responsibility also

includes maintenance of adequate accounting

records in accordance with the provisions of the

Act for safeguarding the assets of the Company

and for preventing and detecting frauds and

other irregularities; selection and application of

appropriate accounting policies; making judgments

and estimates that are reasonable and prudent;

and design, implementation and maintenance

of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to

the preparation and presentation of the standalone

financial statements that give a true and fair view and are free from material misstatement, whether

due to fraud or error.

B. In preparing the standalone financial statements, management is responsible for assessing the

Company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going

concern and using the going concern basis of

accounting unless management either intends to

liquidate the Company or to cease operations, or

has no realistic alternative but to do so.

The Board of Directors are responsible for

overseeing the Company’s financial reporting process.

6. Auditor’s Responsibilities for the Audit of the

Standalone Financial Statements

A Our objectives are to obtain reasonable assurance

about whether the standalone financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue

an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in

accordance with SAs will always detect a material

misstatement when it exists. Misstatements can

arise from fraud or error and are considered

material if, individually or in the aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the basis of

these standalone financial statements.

B. As part of an audit in accordance with SAs, we

exercise professional judgment and maintain

professional skepticism throughout the audit. We

also:

i) Identify and assess the risks of material

misstatement of the standalone financial statements, whether due to fraud or error, design

and perform audit procedures responsive to those

risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement

resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery,

intentional omissions, misrepresentations, or the

override of internal control.

ii) Obtain an understanding of internal financial controls relevant to the audit in order to design

audit procedures that are appropriate in the

circumstances. Under section 143(3)(i) of the Act,

we are also responsible for expressing our opinion

on whether the Company has adequate internal

financial controls system in place and the operating effectiveness of such controls.

iii) Evaluate the appropriateness of accounting policies

used and the reasonableness of accounting

estimates and related disclosures made by

management.

iv) Conclude on the appropriateness of management’s

use of the going concern basis of accounting and,

based on the audit evidence obtained, whether

a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern.

If we conclude that a material uncertainty exists,

we are required to draw attention in our auditor’s

51


report to the related disclosures in the standalone

financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions

are based on the audit evidence obtained up to the

date of our auditor’s report. However, future events

or conditions may cause the Company to cease to

continue as a going concern.

v) Evaluate the overall presentation, structure and

content of the standalone financial statements, including the disclosures, and whether the

standalone financial statements represent the underlying transactions and events in a manner

that achieves fair presentation.

C. Materiality is the magnitude of misstatements in the

standalone financial statements that, individually or in aggregate, makes it probable that the economic

decisions of a reasonably knowledgeable user

of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope

of our audit work and in evaluating the results

of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.

D. We communicate with those charged with

governance regarding, among other matters,

the planned scope and timing of the audit and

significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

E. We also provide those charged with governance

with a statement that we have complied with

relevant ethical requirements regarding

independence, and to communicate with them all

relationships and other matters that may reasonably

be thought to bear on our independence, and

where applicable, related safeguards.

F. From the matters communicated with those

charged with governance, we determine those

matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit

matters. We describe these matters in our auditor’s

report unless law or regulation precludes public

disclosure about the matter or when, in extremely

rare circumstances, we determine that a matter

should not be communicated in our report because

the adverse consequences of doing so would

reasonably be expected to outweigh the public

interest benefits of such communication.

II. Report on Other Legal and Regulatory

Requirements

1. As required by Section 143(3) of the Act, based on

our audit we report that:

A. We have sought and obtained all the information

and explanations which to the best of our knowledge

and belief were necessary for the purposes of our

audit.

B. In our opinion, proper books of account as required

by law have been kept by the Company so far as it

appears from our examination of those books.

C. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income,

Statement of Changes in Equity and the Statement

of Cash Flow dealt with by this Report are in

agreement with the relevant books of account.

D. In our opinion, the aforesaid standalone

financial statements comply with the specified under Section 133 of the Act, read with Rule 7 of

the Companies (Accounts) Rules, 2014.

E. On the basis of the written representations received

from the directors as on March 31, 2019 taken

on record by the Board of Directors, none of the

directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section

164 (2) of the Act.

F. With respect to the adequacy of the internal

financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure

A”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

G. With respect to the other matters to be included

in the Auditor’s Report in accordance with the

requirements of section 197(16) of the Act, as

amended:

52


In our opinion and to the best of our information


remuneration paid by the Company to its directors

during the year is in accordance with the provisions

of section 197 read with schedule v to the Act.

H. With respect to the other matters to be included in

the Auditor’s Report in accordance with Rule 11 of

the Companies (Audit and Auditors) Rules, 2014,

as amended in our opinion and to the best of

our information and according to the explanations

given to us:

i) The Company has no pending litigations as at

31st March, 2019 which has impact on its financial statements.

ii) The Company did not have only long term contracts

and had no derivative contract outstanding as at

31st March, 2019.

iii) The Company did not have any dues required to

the transferred by it to the Investor Education and

Protection fund.

2. As required by the Companies (Auditor’s Report)

Order, 2016 (“the Order”) issued by the Central

Government in terms of Section 143(11) of the

Act, we give in “Annexure B” a statement on the

matters specified in paragraphs 3 and 4 of the Order.

FOR M. L. GARG & COMPANY


FRN001604N

(MANISh K. GARG)

PARTNER

M. NO. 96238

PLACE OF : NEW DELHI

DATE : 20TH May, 2019

ANNEXURE “A” tO thE INDEPENDENt AUDItOR’S

REPORt OF EVEN DAtE ON thE StANDALONE

FINANCIAL StAtEMENtS OF INDIAN tONERS &

DEVELOPERS LIMItED

(Referred to in paragraph (II 1F) under ‘Report on

other Legal and Regulatory Requirements’ of our

report of even date)

REPORt ON thE INtERNAL FINANCIAL CONtROLS

OUR FINANCIAL REPORtING UNDER CLAUSE

(I) OF SUB-SECtION 3 OF SECtION 143 OF thE

COMPANIES ACt, 2013 (“thE ACt”)

We have audited the internal financial controls over financial reporting of Indian toners & Developers

Limited (“the Company”) as of March 31, 2019 in

conjunction with our audit of the standalone financial statements of the Company for the year ended on that

date.

MANAGEMENt’S RESPONSIBILItY FOR INtERNAL

FINANCIAL CONtROLS

The Company’s management is responsible for

establishing and maintaining internal financial controls based on “the internal control over financial reporting criteria established by the Company considering the

essential components of internal control stated in the

Guidance Note on Audit of Internal Financial Controls

over Financial Reporting issued by the Institute of

Chartered Accountants of India”. These responsibilities

include the design, implementation and maintenance of

adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s

policies, the safeguarding of its assets, the prevention

and detection of frauds and errors, the accuracy and

completeness of the accounting records, and the timely

preparation of reliable financial information, as required under the Companies Act, 2013.

AUDItORS’ RESPONSIBILItY

Our responsibility is to express an opinion on the

Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in

accordance with the Guidance Note on Audit of Internal

Financial Controls Over Financial Reporting (the

53


“Guidance Note”) and the Standards on Auditing, issued

by ICAI and deemed to be prescribed under section

143 (10) of the Companies Act, 2013, to the extent

applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and,

both issued by the Institute of Chartered Accountants of

India. Those Standards and the Guidance Note require

that we comply with ethical requirements and plan

and perform the audit to Obtain reasonable assurance

about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit

evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal

financial controls over financial reporting, assessing the risk that a material weakness exists, and testing

and evaluating the design and operating effectiveness of internal control based on the assessed risk. The

procedures selected depend on the auditor’s judgement,

including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

MEANING OF INtERNAL FINANCIAL CONtROLS

OVER FINANCIAL REPORtING

A company’s internal financial control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles. A company’s internal financial control over financial reporting includes those policies

and procedures that (1) pertain to the maintenance of

records that, in reasonable detail, accurately and fairly

reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance

that transactions are recorded as necessary to permit

preparation of financial statements in accordance with generally accepted accounting principles, and

that receipts and expenditures of the company are

being made only in accordance with authorisations of

management and directors of the company; and (3)

provide reasonable assurance regarding prevention

or timely detection of unauthorised acquisition, use, or

disposition of the company’s assets that could have a

material effect on the financial statements.

INhERENt LIMItAtIONS OF INtERNAL FINANCIAL

CONtROLS OVER FINANCIAL REPORtING

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of

controls, material misstatements due to error or fraud

may occur and not be detected. Also, projections of

any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes

in conditions, or that the degree of compliance with the

policies or procedures may deteriorate.

OPINION

In our opinion, the Company has, in all material respects,

an adequate internal financial Controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019, based on “the internal control over

financial reporting criteria established by the Company considering the essential components of internal

control stated in the Guidance Note on Audit of Internal

Financial Controls over Financial Reporting issued by

the Institute of Chartered Accountants of India”

FOR M.L. GARG & COMPANY

ChARtERED ACCOUNtANtS

FRN 001604N

(MANISh K. GARG)

PARtNER

M.NO. 96238

PLACE OF : NEW DELHI

DATE : 20TH MAY, 2019

54


ANNEXURE tO thE INDEPENDENt AUDItORS’

REPORt

The Annexure “B” referred to in paragraph (II) 2 of our

report of even date to the members of Indian toners

& Developers Limited on the Standalone Financial

Statements for the year ended 31st March, 2019.

i) In respect of Company’s Fixed Assets

(a) The Company has maintained proper records

showing full particulars including quantitative

details and situation of fixed assets.

(b) As explained to us, physical verification of fixed assets has been carried out by the Company and no material discrepancies

were noticed on such verification. In our opinion the frequency and manner of physical

verification is reasonable, having regard to the size of the Company and nature of its

business.

(c) Title deeds of immovable properties of

the company are held in the name of the

Company.

ii) (a) The Company is in the business manufacturing

“Toner” the inventories (except goods in

transit) have been physically verified during the year by the management at reasonable

intervals.

(b) In our opinion, no material discrepancies

were noticed on physical verification of inventories.

iii) According to the information and explanations

given to us, the Company has, during the year

not granted any loans, secured or unsecured to

companies, firm, Limited liability partnerships or other parties covered in the register maintained

under section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii) of the Order is not

applicable to the Company.

iv) According to the information and explanation

given to us, the company has complied with the

provisions of section 185 and 186 of the Companies Act, 2013, in respect of investments.

v) The Company has not accepted any deposits

during the year and therefore, the provision of the

clause 3(v) of the Order is not applicable to the

Company.

vi) The Central Government has not prescribed the

maintenance of cost records under Sub Section

(1) of Section 148 of the Companies Act, 2013 for any of the products/services of the Company.

vii) According to the information and explanations

given to us, in respect of statutory dues:

(a) The Company is generally regular in

depositing undisputed statutory dues

including Provident Fund, Employees State

Insurance, Income Tax, Goods and Service

Tax (GST), Cess and other material statutory

dues applicable to it with the appropriate

authorities.

(b) There is no undisputed amount payable in

respect of Provident Fund, Employee’s State

Insurance, Income Tax, Goods and Service

Tax (GST), Cess and other material statutory

dues in arrears as at March 31, 2019 for the

period of more than six months from the date

they become payable.

(c) According to the records and information

and explanation given to us and the records

examined by us of the Company, there were

no dues in respect of Goods & Service Tax

(GST), Cess and other statutory dues which

have not been deposited on account of

disputes.

viii) The Company has not taken any term loans or

borrowings from financial institutions, banks and government or has not issued any debentures.

Hence reporting under clause 3(viii)of the Order is

not applicable to the Company.

ix) The Company has not raised moneys by way of

initial public offer or further public offer (Including debt instruments) or term loans and hence reporting

under clause 3 (ix) of the Order is not applicable to

the Company.

x) Based upon the audit procedures performed and

to the best of our knowledge and according to

the information and explanations given to us by

the management, we report that no fraud by the

Company or no material fraud on the company

55


by its officer or employees has been noticed or reported during the course of our audit.

xi) In our opinion and according to the information and

explanations given to us, the Company has paid/

provided managerial remuneration in accordance

with the provisions of section 197 read with

Schedule V of the Act.

xii) In our opinion and according to the information

and explanations given to us, the Company is not

a Nidhi Company and hence paragraph 3 (xii) of

the Order is not applicable to the Company.

xiii) In our opinion and according to the information

and explanations given to us, the Company has

complied with the provisions of section 177 and 188 of the Companies Act, 2013 wherever applicable,

for all transactions with related parties and the

details of related party transactions have been

disclosed in the standalone financial statements as required by the applicable accounting standards.

xiv) During the year, the Company has not made any

preferential allotment or private placement of

shares or fully or partly paid convertible debentures

and hence reporting under clause 3 (xiv) of the

Order is not applicable to the Company.

xv) In our opinion and according to the information

and explanations given to us, during the year

the Company has not entered into any non-

cash transactions with its Directors or persons

connected to its directors and provisions of section

192 of the Companies Act, 2013 are applicable to

the Company.

xvi) The Company is not required to be registered

under section 45-1A of the Reserve Bank of India

Act, 1934 and hence paragraph 3 (xvi) of the Order

is not applicable to the Company.

FOR M.L. GARG & COMPANY


FRN 001604N

(MANISh K. GARG)

PARtNER

M.NO. 96238

PLACE OF SIGNAtURE : NEW DELhI

DAtE : 20th MAY, 2019

56


StANDALONE BALANCE ShEEt AS At 31St MARCh 2019 (Rs in Lakhs)

Particulars Note No. As at 31st March

2019

As at 31st

March 2018

I. ASSEtS

(1) Non-Current Assets

(a) Property, Plant & Equipment 2 5,179.79 5,188.07 (b) Capital Work in progress 3 87.56 94.62

(c) Intangible Assets 4 3.63 4.14

(d) Financial assets

(i) Investments 5 8,055.24 6,585.31 (ii) Other Financial Assets 6 213.23 208.90 (e) Deferred Tax Assets (Net) 7 - -

(f) Other Non Current Assets 8 115.56 51.26

(2) Current Assets

(a) Inventories 9 1,808.56 1,339.96

(b) Financial Assets

(i) Current Investments 10 1,045.77 2,162.18 (ii) Trade Receivables 11 1,830.58 1,742.27

(iii) Cash and Cash Equivalents 12 1,066.68 450.45

(iv) Bank Balances other than (iii) above 13 386.57 333.53

(v) Loans 14 14.18 36.55

(vi) Other Financial Assets 6 31.49 50.33

(c) Current Tax Assets (net) 15 - 21.69

(d) Other Current Assets 8 369.09 559.19

tOtAL ASSEtS 20,207.93 18,828.45

II. EQUItY AND LIABILItIES

EQUItY

(a) Equity Share Capital 16 1,316.16 1,316.16

(b) Other Equity 17 16,670.15 15,126.94

LIABILItIES

(1) Non-Current Liabilities

(a) Financial Liabilities

(i) Other Financial Liabilities 18 81.94 76.61

(b) Provisions 19 63.81 79.42

(c) Deferred Tax Liabilities (Net) 7 56.59 186.45

(2) Current Liabilities

(a) Financial Liabilities

(i) Trade Payables 20

‘ Total Outstanding dues of Micro Small and Medium Enterprises 26.19 -

‘ Total outstanding dues of creditors other than Micro Small and Medium

Enterprises

1,591.36 1,617.13

(ii) Other Financial Liabilities 18 35.21 11.77

(b) Other Current Liabilities 21 319.02 398.71 (c) Provisions 19 28.65 15.26

(d) Current Tax Liabilities (Net) 15 18.85 -

tOtAL EQUItY & LIABILItIES 20,207.93 18,828.45

As per our Report of even date.

FOR M.L. GARG & COMPANY For and on Behalf of the Board


FRN: 001604N

(MANISh K GARG ) (SANJEEV GOEL) (SUShIL JAIN)

Partner Director Chairman & Managing Director

Membership No. : 96238 DIN 00044850 DIN.00323952

Place: Delhi (S.C.SINGhAL) (N.K.MAhEShWARI)

Dated: 20th May, 2019 Company Secretary Chief Financial Officer

57







StANDALONE StAtEMENt OF PROFIt & LOSS FOR thE YEAR

ENDED 31St MARCh, 2019

(Rs in Lakhs)

Particulars Note No. As at 31st March

2019

As at 31st March

2018

REVENUE :

Revenue from Operations (Net) 22 11,548.08 11,201.17

(Sales excluding GST)

Other Income 23 649.04 722.34

total Revenue 12,197.12 11,923.51

EXPENSES:

Cost of Materials Consumed 24 5,096.92 4,810.61 Purchase Of Trading Goods 82.36

Other Manufacturing Expenses 25 1,724.66 1,614.49

Change in Inventory of Finished goods & Work-in-progress 26 (98.85) (146.35)

Excise Duty - 5.48 Employee Benefit Expenses 27 1,408.04 1,292.24

Finance Cost 28 63.10 56.79

Depreciation and Amortization Expense 29 377.09 367.57

Other Expenses 30 996.29 936.58

total Expenses 9,649.61 8,937.41

Profit before Exceptional and Extraordinary items and Tax 2,547.51 2,986.10

Exceptional items 31 30.68 -

Profit before Extraordinary items and Tax 2,516.83 2,986.10

Extraordinary Items - -

Profit before Tax 2,516.83 2,986.10

tax expense:

(1) Current Tax (519.50) (545.03)

(2) Taxes in respect of earlier years (76.56) (11.10)

(3) Deferred Tax 14.40 24.79

(4) MAT Credit Entitlement 106.33 (32.41)

(5) Excess/ Short Provision adjusted - -

Profit for the year 2,041.50 2,422.35

Other comprehensive income

a) Items that will not be reclassified to profit or loss

(i) Remeasurement benefit of defined benefit plans (31.41) (16.65)

(ii) Income tax expense on remeasurement benefit of defined benefit plan 9.15 5.76

b) (i) Items that will be reclassified to profit or loss - -

(ii) Income tax relating to items that will be reclassified to profit or loss - -

total comprehensive income for the period 2,019.24 2,411.46

Earning per equity share of Rs. 10/- each

(1) Basic (In Rs.) 15.51 18.40 (2) Diluted (In Rs.) 15.51 18.40

Significant Accounting Policies 1

The accompanying notes form an integral part of

these financial statementsAs per our Report of even date.

FOR M.L.GARG & COMPANY For and on Behalf of the Board


FRN: 001604N

58


b) Other Equity

( Rs. In Lakhs )

OthER EQUItY Reserves and Surplus Comprehensive

Income

total

Capital

Redemption

Reserve

Revaluation

Reserve

Capital

Reserve

General

Reserve

Surplus /

(Deficit)Items of other

comprehensive

income

total

Balance as at 01.04.2018 - 530.72 - 5,240.74 9,377.53 (22.05) 15,126.94

Profit for the year - - - - 2,041.50 - 2,041.50

other adjustments - - - - - - -

other increase/reduction during

the year

-

-

- - - - -

Items of OCI for the year ended,

net of tax-

-

-

- - - - -

- Remeasurement benefit of defined benefit plans

-

-

- - - (22.26) (22.26)

total Comprehensive Income for

the year 2018-19 (A)

- 530.72 - 5,240.74 11,419.03 (44.31) 17,146.18

Less :Reductions during the

year

Proposed Dividend on Equity - - - - 394.85 - 394.85 Tax on Dividend - - - - 81.18 - 81.18 Transferred to/(from) - Surplus/

(Deficit) - - -

-

- - -

Transferred to / (from) -

Revaluation Reserve

- - - -

-

- -

total (B) - - - - 476.03 - 476.03

Balance as at 31.03.2019

(A)-(B)

- 530.72 - 5,240.74 10,943.00 (44.31) 16,670.15

Statement of Change in Equity

(Rs. In Lakhs ) a) Equity Share Capital

For the year ended 31st March, 2018

Balance as at 1st April 2017 Changes in equity share capital

during the year

Balance as at 31st

March 2018

1316.16 - 1316.16


Balance as at 1st April 2018 Changes in equity share capital

during the year

Balance as at 31st March 2019

1316.16 - 1316.16




FRN No.: 001604N

(MANISh K.GARG ) (SANJEEV GOEL) (SUShIL JAIN)





59


StAtEMENt OF CASh FLOW AS At 31St MARCh , 2019

(Rs. In Lakhs)

Particulars Year ended

31.03.2019

Year ended

31.03.2018

CASh FLOW FROM OPERAtING ACtIVItIES :

Net Profit Before Tax 2516.83 2986.10

Adjustment for :

Depreciation & Amortization 377.09 367.57

Loss/(profit) on sale of PPE - 7.93

Loss/(profit) on sale of Investments (15.92) (10.72)

Interest Expenses 63.10 56.79

Interest income (80.47) (55.20)

Provision for Employees Benefit (Leave Encashment) (2.22) 9.95

Re-measurement of defined benefit obligation (31.41) (16.65)

Liabilities / provisions no longer required written back/Sundry

Balances write off/ back(33.14) (9.07)

Unrealised Foreign Exchange (Gain ) / Loss (48.66) 11.79

Income from Current Investment (Non Trade) Dividend (90.09) (109.95)

Gain on Mark to Market of Investments (409.50) (369.04)

Operating Profit before Working Capital Changes 2245.61 2869.50

Adjustment for :

(Increase)/Decrease in Inventories (468.60) (202.04)

(Increase)/Decrease in Trade Receivables (88.31) (280.99)

(Increase)/Decrease in Loans & Other Assets 250.11 (248.09)

Increase/(Decrease) in Trade Payables & Other Payables (50.51) 484.65

Cash Generated from Operations 1888.30 2623.03

Direct Taxes Paid/Refund (Net) (500.65) (705.43)

Net Cash Inflow /(Outflow) from Operating Activities (A) 1387.65 1917.60

CASh FLOW FROM INVEStING ACtIVItIES :

Purchase of PPE / Capital Advances & Capital Work-in-Progress (544.49) (379.04)

(Purchase) / Sale of Investments 193.61 (1376.22)

Proceeds from Sale of Property, Plant & Equipments 1.07 4.66

Movement in Other Bank Balances (including unclaimed dividend) (53.04) (11.76)

Interest Received 80.47 55.20

Dividend Received 90.09 109.95

Net Cash Inflow/(outflow) from Investing Activities (B) (232.29) (1597.21)

60


(Rs. In Lakhs)


31.03.2019

Year ended

31.03.2018

CASh FLOW FROM FINANCING ACtIVItIES :

Interest Paid (63.10) (56.79)

Dividend Paid (including DDT) (476.03) (343.80)Net cash Inflow/(outflow) from financing activities (C) (539.13) (400.59)

Net Increase/ (Decrease) in Cash and Cash Equivalents (A+B+C) 616.23 (80.20)Add: Cash and Cash Equivalents at the Beginning of the year 450.45 530.65

Cash and Cash Equivalents at the End of the year 1066.68 450.45

Components of cash & cash equivalents:

- Balance with Banks : On current accounts 1062.83 446.42

- Cash on hand 3.85 4.03

1066.68 450.45

Note:

The Cash Flow Statement has been prepared under the Indirect Method as set out in Indian Accounting Standard - 7

“Cash Flow Statements” as notified by the Central Government of India.

Acquisition/Purchase of Property Plant & equipments includes movement of capital work in progress, Intangible assets

under development and capital advances & capital payable, paid during the year.

Previous year’s figures have been re-grouped / re-arranged whererver considered necessary to confirm to make them comparable.









FRN: 001604N

61


NOtES tO thE FINANCIAL StAtEMENtS AS At AND FOR thE YEAR ENDED 31.03.2019

1 ACCOUNtING POLICIES

i) General Corporate Information:

Indian Toners & Developers Limited is a Company domiciled and incorporated in India under the Indian

Companies Act, 2013 and is in the business of manufacturing of Toners only. The Company manufacturing

units are located at Rampur & Sitarganj.

ii) Basis of preparation of financial statements:

a) The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the provisions of section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 under historical cost convention on the accrual

basis except for certain financial instruments which are measured at fair value, the provision of Companies Act. 2013 (‘Act’) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued Indian accounting

standard is initially adopted or are vision to an existing Indian accounting standard requires a change in

the accounting policy hitherto in use.

b) Functional and Presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Company’s functional currency. All financial information presented in INR has been rounded to the nearest Lakhs (upto two decimals), except as stated otherwise.

iii) Use of Estimates

The preparation of the Financial Statements in conformity with Ind AS requires the management to

make estimates, judgments and assumptions. These estimates, judgment and assumptions affect the application of accounting policies and the reported amount of Assets and Liabilities and disclosure of

Contingent Liabilities on the date of the Financial Statements and reported amounts of revenues and

expenses for the year. Accounting estimate could change from year to year. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware

of the changes in estimates are reflected in the financial statements in the period in which the changes are made and if material, their effects are disclosed in the notes to financial statements.

iv) Current and non-current classification The Company presents assets and liabilities in the balance sheet based on current/non-current

classification. An asset is current when it is:

• Expected to be realized or intended to sold or consumed in normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realized within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least

twelve months after the reporting period.

All other assets are classified as non-current. A liability is current when:

• It is expected to be settled in normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer settlement of the liability for at least twelve months after

the reporting period.

62


All other liabilities are classified as non-current. v) Property, Plant and Equipments

a) Initial recognition and measurement

An item of property, plant and equipments recognized as an asset if and only if it is probable that future

economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.

Property, plant and equipment are considered at deemed cost, less accumulated depreciation/amortizaton

and accumulated impairment losses, if any except Land which was shown at Fair value. Cost includes

expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes & duties.

Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready

for use, as intended by management. The company depreciates property, plant and equipment over their

estimated useful lives using the straight-line method.

When parts of an item of property, plant and equipment have different useful lifes, they are recognized separately.

Stores and spare parts having life more than 12 months are capitalised at their respective carrying amount

with the main asset and are being depreciated over remaining life of main asset prospectively.

Property, Plant and Equipments which are not ready for intended use as on the date of Balance Sheet are

disclosed as ‘Capital Work-In-Progress’.

The Company assesses at each balance sheet date whether there is any indication that a Property,

plant and equipment may have been impaired. If any such indication exists, the Company estimates the

recoverable amount of the Property, plant and equipment. If such recoverable amount of the Property,

plant and equipment or the recoverable amount of the cash generating unit to which the Property, plant

and equipment belongs is less than its carrying amount, the carrying amount is reduced to its recoverable

amount. The reduction is treated as an impairment loss and is recognized in the Statement of profit and loss . If at the balance sheet date there is an indication that if a previously assessed impairment loss no

longer exists, the recoverable amount is reassessed and the Asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

b) Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is

probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying

amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is

derecognized. The costs of the day-to-day servicing of Property, Plant and Equipment are recognized in

profit or loss as incurred.

c) Derecognition

Property, Plant and Equipments are derecognized when no future economic benefits are expected from their use or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment

are determined by comparing the proceeds from disposal with the carrying amount of property, plant and

equipment, and are recognized in the statement of profit and loss.

d) Depreciation/amortization

Depreciation is recognized in statement of profit or loss on a straight-line basis over the estimated useful lifes of each part of an item of Property, Plant and Equipment . Leasehold lands are amortized over

63


the lease term unless it is reasonably certain that the Company will obtain ownership by the end of the

lease term.

Depreciation on additions to/deductions from property, plant and equipment during the year is charged on

pro-rata basis from/up to the date on which the asset is available for use/disposed.

Depreciation on Revalued Assets is calculated on their respective revalued amounts and is computed on

the basis of remaining useful life as estimated by the valuer on straight line method.

The company, based on technical assessment made by technical expert and management estimate,

depreciates certain items of property, plant and equipment over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that

these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

l Leasehold Land Lease Period

l Plant Buildings 30 years

l Leasehold Improvements Lease Period 9 Years

l Plant & Equipment 20 years

l Furniture 10 years

l Office Equipment 5 years

l Computers 3 years

l Motor Vehicles 8 years l Electric Installation 12 years

The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty to

obtain ownership at the end of the lease term.

vi) Intangible Assets

Intangible Assets are recorded at the consideration paid for acquisition less accumulated amortization

and accumulated impairment, if any. Amortization is recognized at Straight Line Basis over their

estimated useful life’s. The estimated useful life and amortisation method are reviewed at the end of

each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquire separately are carried at cost less accumulated impairment losses.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are

included in Statement of profit and loss within other income/ expenses.

Depreciation

Intangible assets that are acquired by the company are measured initially at cost. After initial

recognition, intangible assets are carried at its cost less any accumulated amortization and any

accumulated impairment loss. Intangible assets are amortized on Straight Line Basis over a period

of 3 years.

vii) Financial Instrument

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

64


Financial Assets

I Initial recognition and measurement

All financial assets are recognized initially at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs are attributable to the acquisition or issue of the financial asset, otherwise charged to Statement of Profit & Loss.

II Subsequent measurement

Financial assets are subsequently classified and measured at: • Financial assets at amortised cost • Financial assets at fair value through profit and loss (FVTPL) • Financial assets at fair value through other comprehensive income (FVTOCI).

a) trade Receivables

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised cost,

using the effective interest rate (EIR) method net of any expected credit losses wherever applicable. The EIR is the rate that discounts estimated future cash income through the expected life of financial instrument.

b) Debt instruments

i) Measured at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:

(a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash

flows, and

(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the EIR method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees

or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the Statement of profit or loss.

ii) Measured at FVtOCI (Fair Value through OCI)

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

(a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

(b) The asset’s contractual cash flows represent SPPI. Debt instruments included within the FVTOCI category are measured initially as well as at each reporting

date at fair value. Fair value movements are recognized in the OCI. However, the Company recognizes

interest income, impairment losses & reversals and foreign exchange gain or loss in the profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to profit and loss. Interest earned while holding FVTOCI debt instrument is reported as interest income using the EIR method.

iii) Measured at FVTPL (Fair value through profit or loss) Debt instruments does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified

as at FVTPL.

The Company elects to classify the debt instrument, which otherwise meets amortized cost or FVTOCI

criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement

65


or recognition inconsistency (referred to as ‘accounting mismatch’). Debt instruments included within the

FVTPL category are measured at fair value with all changes recognized in the profit and loss.

III Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company’s balance sheet) when:

• The contractual rights to receive cash flows from the asset have expired, or

• The Company has transferred its contratcual rights to receive cash flows from the asset.

IV Impairment of Financial Asset

Expected credit losses are recognized for all financial assets subsequent to initial recognition in Statement of Profit & Loss other than financial assets in FVTPL category.

For recognition of impairment loss on financial assets other than Trade receivables, the company determines whether there has been a significant increase in the credit risk since initial recogniton.

Financial liabilities


All financial liabilities are recognized at fair value . Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.


Financial liabilities are carried at amortized cost using the effective interest method. Amortized cost is calculated by taking into account any discount or premium on acquisition and any material transaction that are any integral

part of the EIR. For trade and other payables maturing within one year from the balance sheet date, the carrying

amounts approximate fair value due to the short maturity of these instruments.

III Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

viii) Revenue Recognition

Revenue from sale of products is recognized when the significant risks and rewards of ownership of the products are transferred to the buyer, recovery of the consideration is reasonably assured and the amount of revenue

can be measured reliably. Revenues are shown net of discounts.

Dividend income is recognized when the right to receive the income is established. Income from interest on

deposits is recognized on time proportionate basis.

ix) Employee Benefits

The company’s contribution to provident fund and pension fund, are charged on accrual basis to Statement of

Profit & Loss.

a) Expenses and Liabilities in respect of employee benefits are recorded in accordance with Indian Accounting Standard 19 - Employee Benefits issued by the ICAI.

b) Short-term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

66


c) Post employment and other long term employee benefits are recognised as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognised

at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial

gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

Defined benefit costs which are recognized in the statement of profit and loss are categorized as follows:

- Service cost (including current service cost, past service cost. as well as gains and losses on

curtailments and settlements); and

- Net interest expense or income; and

Defined contribution plans Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities

and will have no legal or constructive obligation to pay further amounts. Provident Fund and Employee State

Insurance are Defined Contribution Plans in which company pays a fixed contribution and will have no further obligation beyond the monthly contributions and are recognised as an expenses in Statement of Profit & Loss.

Defined benefit plans A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

Company pays Gratuity as per provisions of the Gratuity Act, 1972. Leave Encashment payable at the end

of the employment is also a post employment defined benefit plan. The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The discount rate is based on the prevailing market yields of Indian government

securities as at the reporting date that have maturity dates approximating the terms of the Company’s

obligations and that are denominated in the same currency in which the benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Any actuarial gains or losses pertaining to components of re-measurements of net defined benefit liability/(asset) are recognized in OCI in the period in which they arise.

The retirement benefit obligation recognized in the standalone Balance Sheet represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reduction in future contributions to the plans.

The liability for termination benefit is recognized at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.

x) Valuation of Inventories

Inventories are stated at lower of cost or net realisable value. The cost for the purpose of valuation is computed

on the basis of weighted average price. The cost of work-in-progress and finished goods comprises of raw materials, direct labour, other direct costs, cost of conversion and appropriate portion of variable and fixed production overheads and such other costs incurred as to bring the inventory to its present location and

condition. Net realisable value is the estimate of the selling price in the ordinary course of business, less the

estimated costs of completion/reprocessing and the estimated cost necessary to make the sale.

67


xi) Foreign Currency transactions and translations

a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the

foreign currency amount the exchange rate between the reporting currency and the foreign currency on/or

closely approximating to the date of the transaction.

b) Conversion: Foreign currency monetary items, if any are reported using the closing rate. Non-monetary items

which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange

rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar

valuation denominated in a foreign currency are reported using the exchange rates that existed when the

values were determined.

c) Exchange Difference: Exchange differences arising on the settlement of monetary items, if any or on reporting such monetary items of the Company at rates different from those at which they were initially recorded during the year or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

d) Foreign Exchange Forward Contracts: Monetary Assets and Liabilities, if any are restated at the rate prevailing

at the period end or at the spot rate at the inception of forward contract where forward cover for specific asset/liability has been taken and in respect of such forward contracts the difference between the contract rate and the spot rate at the inception of the forward contract is recognized as income or expense in Statement of Profit and Loss over the life of the contract. All other outstanding forward contracts on the closing date are mark to

market and resultant loss is recognized as expense in the Statement of Profit and Loss. Mark to market gains, if any, are ignored. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognized as income or as expense for the period.

xii) Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that

probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed in respect of possible obligations that may arise from past events but their

existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent Assets are neither recognized nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the assets and related income are recognized in the period in which the change occurs.

xiii) Cash & Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of less than three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of

cash in hand and balance with banks including margin money.

xiv) Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as

part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get

ready for its intended use. All other borrowing costs are charged to Profit and Loss account. xv) Income tax

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net

profit or loss for the period. Current tax

Current tax expenses is based on the provisions of Income Tax Act, 1961 and judicial interpretations thereof

as at the Balance Sheet date and takes into consideration various deductions and exemptions to which the

68


Company is entitled to as well as the reliance placed by the Company on the legal advices received by it.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the current year and reversal of timing differences for earlier years. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have

been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only

to the extent there is reasonable certainty that the assets can be realized in future; however, where there is

unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual

certainty of realization of such assets. Deferred tax assets are reviewed at each Balance Sheet date and are

written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized. Deferred tax assets and deferred tax liabilities are offsets when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing tax laws.

xvi) Leases

As Lessee

Accounting for finance leases Leases of Property, Plant and Equipment, if any, where the Company, as lessee has substantially all risks and

rewards of ownership are classified as finance lease. On initial recognition, assets held under finance leases are recorded as Property, Plant and Equipment and the related liability is recognized under borrowings. At

inception of the lease, finance leases are recorded at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability.

Accounting for operating leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating lease. Payments made under operating leases are recognized as an expense over the lease term.

xvii) Earning Per Share

Basic Earning Per Share is calculated by dividing the net profit for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, net profit after tax during the year and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

xviii) Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date. The fair value measurement is based on the

presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the company. The company uses

valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of

69


unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level

input that is significant to the fair value measurement as a whole: Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2–Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3–Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing

categorization (based on the lowest level input that is signifi cant to the fair value measurement as a whole) at the end of each reporting period. The Company determines the policies and procedures for

both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in

discontinued operations.

xix) Cash Flow Statement

Cash Flow are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments.

The cash flow from regular revenue generating, financing and investing activities of the company are segregated.

xx) Key accounting estimates and judgements

The preparation of the Company’s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions

and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or

liabilities affected in future periods.xxi) Recent accounting pronouncement issued but not yet effective upto the date of issuance of Financial

Statements

Ind AS 116: Leases

On 30th March 2019, the Ministry of Corporate Affairs (MCA) has notified Ind AS 116 Leases, under Companies (Indian Accounting Standards) Amendment Rules, 2019 which is applicable with effect from 1st April, 2019.

Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for

both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lease accounting model

for lessee and requires the lessee to recognize right of use assets and lease liabilities for all leases with a

term of more than twelve months, unless the underlying asset is low value in nature. Currently, operating lease

expenses are charged to the statement of profit and loss. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17.

As per Ind AS 116, the lessee needs to recognise depreciation on rights of use assets and finance costs on lease liabilities in the statement of profit and loss. The lease payments made by the lessee under the lease arrangement will be adjusted against the lease liabilities.

The Company is currently evaluating the impact on account of implementation of Ind AS 116 which might have

significant impact on key profit & loss and balance sheet ratio i.e. Earnings before interest, tax, depreciation and amortisation (EBITDA), Asset coverage, debt equity, interest coverage, etc.

70

IND

IAN

tO

NE

RS

& D

EV

EL

OP

ER

S L

tD

.Notes to the Standalone Financial Statements As At 31st March, 2019

NOtE NO. 2 - PROPERtY , PLANt & EQUIPMENt

(Rs. in Lakhs)

Particulars Freehold

Land

Leasehold

Land

Building Plant &

Equipment

Computers

& It

Equipment

Electric

Installation

Office Equipment

Furniture

& Fixtures

Motor

Vehicle

total

Gross Block

As at 01.04.2018 362.56 500.04 1,005.91 6,408.26 46.50 513.84 64.29 130.78 302.88 9,335.06

Additions - - 142.51 133.43 5.89 33.74 16.13 36.24 367.94

Acquired through business

combinations

- - - - - - - - - -

Acquisition of a subsidiary - -

Assets held for distribution - - - - - - - - -

Disposals (1.84) (1.84)

Demergers - - - - - - - - -

Other adjustments - - - - - - - - - -

- Adjustments - - - - -

- Borrowing costs - - - - - - - - -

- Exchange difference - - - - -

As at 31.03.2019 362.56 500.04 1,148.42 6,539.85 52.39 547.58 80.42 167.02 302.88 9,701.16

Depreciation

As at 01.04.2018 - 12.20 317.32 3,293.61 36.61 279.09 36.88 76.64 94.63 4,146.98

Charge for the year - 6.18 32.73 220.74 5.82 51.16 8.93 14.84 34.62 375.02

Disposals (0.63) - - (0.63)

Adjustments ( as per Ind-AS) -

As at 31.03.2019 - 18.38 350.05 3,513.72 42.43 330.25 45.81 91.48 129.25 4,521.37

Net Block

As at 31.03.2019 362.56 481.66 798.37 3,026.13 9.96 217.33 34.61 75.54 173.63 5,179.79

As at 31.03.2018 362.56 487.84 688.59 3,114.65 9.90 234.75 27.41 54.13 208.24 5,188.07

71


NOtE NO. 3 - CAPItAL WORK IN PROGRESS

(Rs. in Lakhs)

Particulars Capital Work In Progress

As at 01.04.2018 94.62

Addition During The Year 198.13

Deduction During The Year 205.19

As at 31.03.2019 87.56

NOtE NO. 4 - OthER INtANGIBLE ASSEtS

(Rs. in Lakhs)

Particulars Computer softwares total

Gross Block

As at 01.04.2018 40.27 40.27

Additions 1.56 1.56

As at 31.03.2019 41.83 41.83

As at 31.03.2019 41.83 41.83

Amortization

As at 01.04.2018 36.13 36.13

Charge for the year 2.07 2.07

Disposals - -

Adjustments - -

As at 31.03.2019 38.20 38.20

Net Block

As at 31.03.2019 3.63 3.63

As at 31.03.2018 4.14 4.14

72


NOtE NO. 5 - NON CURRENt INVEStMENt (At FAIR VALUE )

(Rs in lakhs)

Sr.

No

Particulars Non - current

No. of Units

{31.03.2019}

[31.03.2018]

As at 31st

March 2019

As at 31st

March 2018

Unquoted

1 Investment in Mutual Funds

a UTI-Fixed Term Income Fund Series

xxviii(1134days)

{1000000} 105.10 100.31

[1000000]

b UTI Ultra Short Term Fund -G {41444.428} 1,255.33 2158.12

[76405.849]

c Reliance Fixed Horizon Fund {1000000} 126.35 116.76

[1000000]

d ABSL Banking and PSU Debt Fund-G {200923.242} 478.42 445.18[200923.242]

e ICICI Prudential Medium Term Fund -G {1659103.918} 472.00 448.68[1659103.918]

f ICICI Prudential Banking & PSU Debt Fund {6404911.543} 1,359.43 1279.57

[6404911.543]

g ICICI Prudential Short Term Plan {2777801.047} 1,073.23 1005.91

[2777801.047]

h KOTAK CREDIT RISK FUND

(Income Opportunities Fund - Growth)

{1246136.236} 253.51 238.33[1246136.236]

i ABSL Corporate Bond Fund-G {843623.803} 604.70 560.55

[843623.803]

j SBI Debt Fund Series C-14 {1000000} 107.27 100.38 [1000000]

2 Investment in Corporate Bond

a Reliance Debentures {20} 210.18 -

b Mahindra and Mahindra Financial Services Ltd {150} 1,522.95 -

c Tata Capital Financial Services Ltd. {30} 302.49

Investment in Unquoted Shares

3 ITDL USA CO.-WOS Company {27500} 184.28 131.52

(Equity shares of USD. 10 each) [20000]

total 8,055.24 6,585.31

73


NOtE NO. 6 - OthER FINANCIAL ASSEtS

(Rs. in Lakhs)

Non - current Current

Sr.

No

Particulars As at 31st

March 2019

As at 31st

March

2018

As at

31st

March

2019

As at

31st

March

2018

1 Security Deposits

Unsecured, considered good 140.31 142.38 2.50 5.32

Sub total (A) 140.31 142.38 2.50 5.32

2 Others

i) Interest Accrued on Fixed Deposit - - 23.65 35.80 ii) Insurance Claims Receivable - - 5.34 9.21

iii) Fixed Deposit with Banks having maturity of

more than 12 months

72.92 66.52

Sub total (B) 72.92 66.52 28.99 45.01

total (A + B ) 213.23 208.90 31.49 50.33

NOtE NO. 7 - DEFERRED tAX ASSEt/LIABILItIES (NEt)

(Rs in lakhs)

Sr.

NoParticulars

As at 31st

March 2019

As at 31st March

2018

1 Deferred tax Liability on account of :

Accelerated Depreciation on

Property Plant & Equipment 537.62 622.00

Fair Valuation of Mutual Funds 251.47 179.58 Revaluation on Land 82.76 82.06 Deferred tax Liability (A) 871.85 883.64

2 Deferred tax Asset on account of :

Provision for Leave Encashment 26.92 32.77

Revaluation on Land 28.70 20.26

Deferred tax Asset (B) 55.62 53.03

Net Deferred tax Liability (C=(A-B) 816.23 830.61

3 MAt Credit entitlement (D) 738.83 632.50

4 Differed tax on OCI (E) 20.81 11.66

Net Deferred tax Liability/ (Asset) (C-D-E) 56.59 186.45

74


NOtE NO. 8 - OthER ASSEtS

(Rs. in Lakhs)


Sr.

No


March 2019

As at 31st

March 2018

As at 31st

March 2019

As at 31st

March 2018

1 Capital Advance* 100.46 13.03 - -

2 Others

i) Prepaid Expenses 0.30 0.94 38.95 37.42

ii) Deferred Expenses of Rent 1.70 2.54 0.85 0.85 iii) Export Benefit Receivable - - 17.15 44.21

iv) IGST Refund Receivable - - 145.41 308.07 v) Balance with Govt Authorities /GST/Excise - - 143.73 152.13

vi) Others 13.10 34.75 - -

vii) Focus Licence in hand - - 23.00 16.51

total 115.56 51.26 369.09 559.19

*Capital Advance of Rs 100 lakhs has been given to Shrilon LLP for Purchase of land at Rampur

NOtE NO. 9 - INVENtORIES

Sr.

No

Particulars As at 31st March

2019

As at 31st

March 2018

1 Raw Material (Include Material In Transit)* 1,064.69 740.02

2 Work-in-Progress 138.14 173.33

3 Finished Goods 309.18 212.22

4 Oil & Lubricants 32.56 25.83

5 Stores & Spares 121.61 104.81

6 Packing Material 105.30 83.75

7 Finished Goods of Trading Material 37.08

total 1,808.56 1,339.96

*Material in transit amounting to Rs. 130.02 lakhs in current year (PY amounting to Rs. 95.49 lakhs)

NOtE NO. 10 - CURRENt INVEStMENtS (At FAIR VALUE)

Sr.

No

Particulars No. of Units

{31.03.2019}

[31.03.2018]

As at 31st

March 2019

As at 31st

March 2018

1 Investment in Mutual Funds (unquoted) (Units

of Rs. 10 each, unless otherwise specified)

a

KOTAK Equity Arbitrage Fund - Dividend Monthly

Reinvest

{9765878.890} 1,045.77 2,162.18 [20220851.096]

total 1,045.77 2,162.18

75


NOtE NO. 11 - tRADE RECEIVABLES

(Rs in Lakhs)

Sr.

No


2019

As at 31st

March 2018

a) Trade Receivables Considered Good -Secured 55.69 50.77

b) Trade Receivables Considered Good -Unsecured 1,774.89 1,691.50

c) Trade Receivables which have significant Increase in credit Risk

- -

d) Trade Receivables - Credit Impaired - -

total 1,830.58 1,742.27

Less : Provision/ Allowance for Doubtful Debts - -

total 1,830.58 1,742.27

NOtE NO. 12 - CASh & CASh EQUIVALENtS

Sr.

No


2019

As at 31st March

2018

1 Cash & Cash Equivalent

Cash Balance 3.85 4.03

Sub total (A) 3.85 4.03

2 Balance with Bank

Current Account 77.18 78.07

EEFC account 285.04 25.51

Cheque in hand 0.03

Sub total (B) 362.22 103.61

3 With SBI, Jasola (Emp. Trust A/C) 0.75

Sub total (C) - 0.75

4 Other Bank Balances

Unfixed Deposits 700.61 342.06

Sub total (D) 700.61 342.06

total [ A + B + C + D] 1,066.68 450.45

76


NOtE NO. 13 - BANK BALANCES OthER thAN CASh & CASh EQUIVALENtS

(Rs in Lakhs)

Sr.

No


2019

As at 31st

March 2018

i) Axis Bank Limited ( Dividend Account) 35.21 11.76

ii) Margin Money held with Bank having maturity more than 3

months but upto 12 months

351.36 321.77

total 386.57 333.53

NOtE NO. 14 - LOANS

Sr.

No


March 2019

As at 31st

March 2018

a) Loan Receivables Considered Good -Secured

b) Loan Receivables Considered Good -Unsecured 14.18 36.55

c) Loan Receivables which have significant Increase in credit Risk

d) Loan Receivables - Credit Impaired

total 14.18 36.55

NOtE NO. 15 - CURRENt tAX ASSEtS (NEt)

Sr.

No


March 2019

As at 31st

March 2018

i) Advance Income Tax (including TDS) 500.65 566.72

ii) Less :Income Tax 519.50 545.03

total (18.85) 21.69

77


NOtE NO. 16 - ShARE CAPItAL

(Rs. In Lakhs)

Sr No. Particulars As at 31st March

2019

As at 31st March

2018

1 AUthORIZED ShARE CAPItAL

20800000 Equity Shares of Rs. 10/- each. 2,080.00 2,080.00

(P/y 20800000 Equity Shares of Rs. 10/- each)

2,080.00 2,080.00

2 ISSUED, SUBSCRIBED & PAID UP ShARE CAPItAL

13161610 Equity Shares of Rs. 10/- each, fully paid 1,316.16 1,316.16

(P/y 13161610 Equity Shares of Rs. 10/- each, fully paid)

total 1,316.16 1,316.16

16.1 The Company held only one class of equity shares, having a par value of Rs 10 per share. Each

shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders are

eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in

proportion of their shareholding.

16.2 Details of shareholders holding more than 5% of the

aggregate shares in the company :

Sr No. Particulars As at 31st March

2019

As at 31st March

2018

Name of the shareholders % of holding % of holding

1 Sushil Jain 34.41 34.37

2 Aashima Jain 8.69 8.69

3 Nandita Jain 14.13 14.13

4 Akshat Jain 10.63 10.63

78


NOtE NO. 17 - OthER EQUItY

(Rs. in Lakhs)

OthER EQUItY Reserves and Surplus Comprehensive

Income

total

Capital

Redemption

Reserve

Revaluation

Reserve

Capital

Reserve

General

Reserve

Surplus /


comprehensive

income

total

Balance as at 01.04.2018 - 530.72 - 5,240.74 9,377.53 (22.05) 15,126.94


other adjustments - - - - - - -

other increase/reduction during the

year

- - - - - - -

Items of OCI for the year ended, net

of tax-

- - - - - -


(22.26) (22.26)

total Comprehensive Income for


- 530.72 - 5,240.74 11,419.03 (44.31) 17,146.18

Less :Reductions during the year

Proposed Dividend on Equity - - - - 394.85 - 394.85

Tax on Dividend - - - - 81.18 - 81.18

Transferred to / (from) - Surplus /

(Deficit)- - - - - - -

Transferred to / (from) - Revaluation

Reserve

- - -

-

- - -

total (B) - - - - 476.03 - 476.03

Balance as at 31.03.2019

(A)-(B)

- 530.72 - 5,240.74 10,943.00 (44.31) 16,670.15

NOtE NO. 18 - OthER FINANCIAL LIABILItIES

(Rs. In Lakhs)

Sr.

No

Particulars Non - current Current

As at 31st

March 2019

As at 31st

March 2018

As at 31st

March 2019

As at 31st

March 2018

1 Trade Deposits from Dealers & Distributors 55.70 50.77 - -

2 Unpaid & Unclaimed Interim Dividend - - 35.21 11.77

3 Lease Rent Equilisation Charge 26.24 25.84 - -

total 81.94 76.61 35.21 11.77

79


NOtE NO. 21 - OthER LIABILItIES


Sr.

No


March 2019

As at 31st

March

2018

As at 31st

March 2019

As at 31st

March 2018

1 Trade Advances - - 6.96 14.46

2 Statutory Dues Payable - - 85.34 121.34

3 Accrued Salaries & Benefits Payable - - 129.21 156.53

4 Other Payables - - 97.51 106.38

total - - 319.02 398.71

NOtE NO. 19 - PROVISIONS

Non - Current Current

Sr.

No


March 2019

As at 31st

March

2018

As at 31st

March 2019

As at 31st

March 2018

1 Employee Benefits

Leave Encashment 63.81 79.42 28.65 15.26

total 63.81 79.42 28.65 15.26

NOtE NO. 20 - tRADE PAYABLES


Sr.

No


March 2019

As at 31st

March

2018

As at 31st

March 2019

As at 31st

March 2018

1 trade Payables

Total outstanding dues of micro, small

and medium enterprises

- - 26.19 -

Total outstanding dues of Creditors

other than Micro Enterprises and Small

Enterprises.

- - 1,591.36 1,617.13

total - - 1,617.55 1,617.13

80


NOtE NO. 22 - REVENUE FROM OPERAtIONS (Rs. In Lakhs)

Sr.

No

Particulars Year Ended 31st

March 2019

Year Ended 31st

March 2018

1 Sale of Products

tONERS

Revenue - Domestic Manufactured Sales* 8,538.95 8,434.59

Revenue- Export Manufactured Sales 3,098.29 2759.12

Revenue-Domestic Trading Sales 13.30 -

Revenue- Export Trading Sales 47.24

11,697.78 11,193.71

Less : Discount and Allowances 365.49 297.76

Sub total (A) 11,332.29 10,895.95

2 Other Operating Revenue

Revenue - Scrap sale 2.85 5.08

IGST Budgetory Support 87.18 178.58

Export Incentives 125.76 121.56

Sub total (B) 215.79 305.22

total (A+B) 11,548.08 11,201.17

*Sales include excise duty of Rs Nil in CY & Rs 5.48 Lakhs in the previous year 2017-18

NOtE NO. 23 - OthER INCOME

Sr.

No


March 2019

Year Ended 31st

March 2018

1 Interest Income 80.47 55.20

2 Dividend Income

- current investments 90.09 109.95

3 Provision no longer required written back 33.14 9.07

4 Proift on sale of mutual fund & Others 15.92 10.72

5 Increase in Value of NAV 409.50 369.04

6 Other Non Operating Incomes 19.92 168.36

total 649.04 722.34

81


NOtE NO. 24 - Cost of Raw Materials Consumed

Sr.

No


March 2019

Year Ended 31st

March 2018

1 RAW MAtERIALS

Opening stock 644.54 624.03

Add: Purchases 5,387.05 4,831.12

Less: Closing Stock 934.67 644.54

Raw Materials Consumed 5,096.92 4,810.61

NOtE NO. 26 - ChANGE IN INVENtORIES OF FINIShED GOODS & WORK-IN-PROGRESS

Sr.

No


March 2019

Year Ended 31st

March 2018

1 Inventories at the end of the year

Finished Goods 309.18 212.22

Work-in-Progress 138.14 173.33

Trading Goods 37.08 -

Subtotal (A) 484.40 385.55

NOtE NO. 25 - Other Manufacturing Expenses

(Rs. In Lakhs)

Sr.

No


March 2019

Year Ended 31st

March 2018

1 Packing Materials Consumed 522.90 493.38

2 Stores and Spares Consumed 103.99 106.28

3 Power & Fuel 1,008.62 933.04

4 Repairs & Maintenance - Plant & Machinery 51.84 47.71

5 Repair & Maintenance - Building 12.52 9.36

6 Security Expenses 24.79 24.72

total 1,724.66 1,614.49

82


Sr.

No


March 2019

Year Ended 31st

March 2018

2 Inventories at the beginning of the year

Finished Goods 212.22 107.07

Work-in-Progress 173.33 132.13

Trading Goods - -

Sub total (B) 385.55 239.20

Net Decrease/(Increase) during the year (B-A) (98.85) (146.35)

NOtE NO. 27 - EMPLOYEE BENEFIt EXPENSES

Sr.

No


March 2019

Year Ended 31st

March 2018

1 Salaries, Wages, Bonus etc. 1,305.59 1,203.12

2 Contribution to Provident & Other Fund 75.33 68.01

3 Staff Welfare Expenses 27.12 21.11

total 1,408.04 1,292.24

NOtE NO. 28 - FINANCE COStS

Sr.

No


March 2019

Year Ended 31st

March 2018

1 Interest Expense 63.10 56.79

total 63.10 56.79

NOtE NO. 29 - DEPRECIAtION

(Rs. In Lakhs)

Sr.

No


March 2019

Year Ended 31st

March 2018

1 Depreciation 377.09 367.57

total 377.09 367.57

83


NOtE NO. 30 - OthER EXPENSES

Sr.

No


March 2019

Year Ended 31st

March 2018

1 Rent 70.89 74.03

2 Rates & Taxes 7.55 8.41

3 Insurance 26.12 31.49

4 Repairs & Maintenance - Computers 2.23 3.49

5 Repair & Maintenance Office 24.03 21.23

6 Advertisement & Sales Promotion 28.81 40.76

7 Communication Expenses 34.57 29.74

8 Travelling Expenses (Including Foreign Travelling) &

Conveyance

185.83 202.22

9 Vehicle Running & Maintenance 33.00 31.95

10 Staff Recruitment & Seminar Expenses 0.79 1.73

11 Printing & Stationary 11.24 7.77

12 Electricity & Water Expenses 5.83 7.06

13 Auditor’s Remuneration

As Audit fees 4.50 4.00

As Tax Audit fees 1.50 0.75

For Other Services - 1.25

14 Legal, Professional & Consultancy Expenses 64.85 51.76

15 Director Sitting Fees 2.70 3.32

16 Freight, Clearing & Forwarding Expenses 249.05 233.76

17 Bank Charges 54.44 53.02

18 Commission on Sales 3.16 31.32

19 Loss on Sale of Fixed Assets - 7.93

20 Corporate Social Responsibilty Expenses 41.31 33.22

21 General Expenses 67.85 51.28

22 Foreign Exchange Fluctuations 76.04 5.09

total 996.29 936.58

84


NOtE NO. 31 - EXCEPtIONAL ItEMS

Sr.

No


March 2019

Year Ended 31st

March 2018

1 Legal and Professional Fees For Germany Project 30.68 -

total 30.68 -

Notes to the Standalone Financial Statements as at 31st March, 2019

32 Disclosure as per Ind AS 2 ‘Inventories’

Inventory Consumed of Rs 6732.43 Lakhs (PY 6343.31 Lakhs) have been recognised as an expense.

the details are as under:

(Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Raw Material 5,096.92 4,810.61

Packing Material & Store Material 626.89 599.66

Fuel & Oil 1,008.62 933.04

total 6,732.43 6,343.31

33 Disclosure as per Ind AS 12 ‘Income tax’

Deferred Tax Asset (DTA) and Deferred Tax Liability (DTL) are recognised as per Ind AS 12. DTA/DTL is

recognised and carried forward to the extent capable of reversal.

Details of Deferred tax Assets / Liabilities as under:-

i) Income Tax recongnised in statement of profit & loss .

(Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Current tax Expenses

Current year (519.50) (545.03)

Adjustment for earlier year (76.56) (11.10)

total current tax expenses (596.06) (556.13)

Deferred Tax Expenses 14.40 24.79

Mat Credit Entitlement 106.33 (32.41)

total tax expenses (475.33) (563.75)

85


ii) Income tax recognised in other comprehensive income

Particulars 31.03.2019

Before tax tax Expense/

Benefit Net of tax

-Net actuarial gain/loss on defined benefit plan (31.41) 9.15 (22.26)


Before tax tax Expense/

Benefit Net of tax


iii) Reconciliation of tax expense and accounting profit multiplied by india’s domestic rate

Particulars 31.03.2019 31.03.2018

Profit before tax 2,516.83 2,986.10

Tax using the domestic tax rate 29.12% ( PY 34.068%) (519.50) (545.03)

tax effect of :

Non deductible tax expenses 14.40 24.79

Deductible tax expenses (76.56) (11.10)

MAt Credit Entitlement 106.33 (32.41)

Total tax expenses in the statement of profit and loss

(475.33) (563.75)

iv) Movement in Deferred tax Balances

31st March 2019

(Rs. In Lakhs)

Particulars

Net balance

01.04.2018

Recognise

in Profit & Loss

Recognised

in OCI

Net

balance

31.03.2019

Difference in written down value as per the books of accounts and Income Tax

883.64 (11.79) - 871.85

Others - - - -

tax assets/liabilities 883.64 (11.79) - 871.85

Less : Deferred Tax Assets 64.69 2.59 9.15 76.43

Mat Credit Entitlement 632.50 106.33 - 738.83

Net tax (Assets)/liabilities 186.45 (120.71) (9.15) 56.59

86


34 Disclosure as per Ind AS 16 ‘Property, Plants & Equipments’

The construction work is in progress in Administrative Block of the company coming up at Sitarganj and

Rampur Plant. Hence, expenses pertaining to this project incurred during the year have been treated as

part of Capital Work in Progress (including intangible assets under development) and the same are to be

capitalised on commencement of commercial production.

(Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Opening Balance of CWIP (including intangible assets under

development)

94.62 786.31

Less : Capitalised during the year (205.19) (890.23)Expenses incurred during the year

Plant Building (Civil Work) 125.25 74.47

Plant & Machinery 23.28 104.89 Electric Installation 11.96 18.15 Office Equipment 37.64 1.03

Closing Balance of CWIP (including intangible assets under

development)

87.56 94.62

35 Disclosure as per Ind AS 17 ‘ Leases’

I Assets taken on Operating Lease

a) The Company has taken office space on operating lease. The lease payments are payable by the company on a monthly or quarterly basis

b) Future minimum lease rentals payable under non- cancellable lease agreements are as under:-

Rs in Lakhs

Particulars 31.03.2019 31.03.2018

- Non-cancellable operating lease rentals payable (minimum lease

payments) under these leases are as follows:

Not Later than one year ( Rs) 60.95 60.95

Later than one year and not later than five years (Rs) 149.33 210.28Later than five years ( Rs) - -

total 210.28 271.23

31st March 2018

Particulars

Net balance

01.04.2017

Recognise

in Profit & Loss

Recognised

in OCI

Net balance

31.03.2018


905.00

(21.36)

883.64 Others - - -

tax assets/liabilities 905.00 (21.36) - 883.64


Mat Credit Entitlement 664.91 (32.41) - 632.50

Net tax (Assets)/liabilities 184.59 7.62 (5.76) 186.45

87


c) Lease payment recognised in the Statement of Profit & Loss for the year 2018-19 is Rs 70.89 Lakhs (Rs 74.03 Lakhs in the Previous year 2017-18)

36 Disclosure as per Ind AS 19 ‘Employee Benefit’

A) Defined Contribution Plan

During the year company has recongised the following amounts in the statement of profit and loss . (Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Benefits (Contributed to)

Provident fund 34.61 15.09

Employees pension scheme 1995 22.63 34.23

total 57.24 49.32

B) Defined Benefit Plan

Gratuity

The company has a defined benefit gratuity plan. Every employee who has rendered continuous service of 5 years or more is entitled to gratuity at 15 day salary (15/26 * last drawn basis salary plus dearness allowances)

for each completed year for five years or more subject to maximum of rupees 20 lakhs on superannuation, resignation, termination ,disablement ,or on death.

Leave encashment

The company has a policy to pay leave encashment. Every employee is entiltled to claim leave encashment

after his/her retirement/termination which is calculated based upon no. of leaves taken. The company pays

leave encashment on normal retirement for a maximum of 90 days or actual accumulation whichever is

less.

Reconcilation of opening and closing balances of the present value of the defined benefit obligation :

(Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Present Value of obligation as at the

beginning of the period

193.08 94.67 169.69 84.74

Current service cost 17.84 17.33 18.03 9.53

Interest cost 14.93 7.34 12.52 6.27

Past Service Cost - - - -

Actuarial gain/(loss) (30.50) (17.72) 17.10 (5.85)Benefit paid (6.12) (9.16) (24.26) -

Present value of obligation as at the end

of the period

189.23 92.46 193.08 94.69

88


Changes in the Fair Value of Plan Assets

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Fair value of plan assets, at the

beginning of the period

155.15 - 144.04 -

Actual Return on plan assets 12.90 - 11.08 -

Employer’s contributions 17.15 - 24.53 -

Fund Charges (0.32) (0.24)

Benefit paid (6.12) - (24.26) -

Fair value of plan assets, at the end of

the period

178.76 - 155.15 -

Amount recognised in the balance sheet consist of:

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Present value of defined benefit obligation 189.23 92.46 193.08 94.69

Fair value of plan assets 178.76 - 155.15 -

Net liability (10.47) (92.46) (37.93) (94.69)

Amounts in the balance sheet:

Current Liability 23.96 28.65 57.78 15.27

Non–current liability 165.27 63.81 135.30 79.42

Net liability 189.23 92.46 193.08 94.69

Total amount recognised in Profit or Loss consist of:

(Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Total Service Cost 17.84 17.33 18.03 9.53

Interest Cost 2.93 7.32 1.89 6.25

Fund Charges 0.32 - 0.27 -

Acturial Gain/(Loss) - (17.72) - (5.85)

Adjustment - - 0.04 -

Benefit paid - (9.16) - -

Net Interest 21.09 (2.23) 20.23 9.93

89


Amount recognised in other comprehensive income consist of:

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Acturial Gain/(Loss )on Obligation (30.51) (17.72) (17.10) (5.85)

Acturial Gain/(Loss) on Assets (0.90) - 0.45 -

total Acturial Gain/(Loss) recognised

in (OCI)

(31.41) (17.72) (16.65) (5.85)

Acturial (Gain)/Loss on obligation consist:

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Actuarial (gains)/losses arising from

changes in demographic assumptions

- - - -


changes in financial assumptions16.08 (1.48) (14.79) (2.11)


changes in experience adjustments on

plan liabilities

(48.46) (16.24) 31.89 (6.46)

total Acturial (Gain)/Loss (32.38) (17.72) 17.10 (8.57)

Information for funded plans with a defined benefit obligation less than plan assets:

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Defined benefit obligation 189.23 92.44 193.08 94.67


Net Liability (10.47) (92.44) (37.93) (94.67)

90


Reconciliation of the present value of defined benefit obligation and the fair value of the plan assets:

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Present value of obligation as at period

ended

189.23 92.46 193.08 94.69

Fair value of plan assets at period end 178.76 - 155.15 -

Unfunded status excess of Actual over

estimated.

(10.47) (92.46) (37.93) (94.69)

Assets/(Liabilities) recognised in the

Balance Sheet

(10.47) (92.46) (37.93) (94.69)

C) Defined Benefit Obligation

I) Actuarial assumption

the following were the principal actuarial assumption at the reporting date.

(Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Discount rate* 7.66% 7.73%

Salary escalation rate*** 5.00% 5.00%Valuation Methodology Projected

Unit Credit

Method

Projected

Unit Credit

Method

* The discount rate assumed is 7.66% which is determined by reference to market yield at the balance sheet date on government bonds.

** The expected rate of return on plan assets is determine considering several applicable factor mainly the

composition of plan assets held, assessed risk of assets management and historical return from plan assets.

*** The estimates of future salary increase considered in actuarial valuation, taking account of inflation, seniority promotion business plan, HR policy and other relevent factors on long term basis.

II) Sensitivity analysis

Reasonable possible change at the reporting date to one of the relevant actuarial assumption, holding other

assumption constant, would have effected the defined benefit obligation by the amount shown below.

Particulars Gratuity Leave encashment

Increase Decrease Increase Decrease

Discount rate ( 0.50 % movement) (4.84) 5.08 (2.56) 2.67

Salary escalation rate ( 0.50% movement) 5.19 (4.98) 2.73 (2.61)

91


III) Expected Maturity analysis of the defined benefits plan in future years

Particulars 0 to 1 Year 1 to 2 Year 2 to 3 Year More than 3

Years

Gratuity 41.48 49.26 36.86 105.04


total 76.86 59.91 53.81 127.99

IV) Risk exposure

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such

company is exposed to various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan’s liability. Increase in salary increase

rate assumption in future valuations will also increase the liability.

B) Investment Risk – If Plan is funded then assets liabilities mismatch & actual investment return on assets

lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D) Mortality & disability – Actual death & disability cases proving lower or higher than assumed in the

valuation can impact the liabilities.

E) Withdrawals – Actual withdrawals proving higher or lower than assumed withdrawals and change of

withdrawal rates at subsequent valuations can impact Plan’s liability.

37 Disclosure as per Ind AS 21 ‘the Effects of Changes in Foreign Exchange Rates’

The amount of exchange differences (net) debited to the Statement of Profit & Loss is 76.04 Lakhs (31 March 2018: Rs 5.09 Lakhs).

38 Disclosures as per Ind AS -24 ‘Related Party Disclosures’

a) Subsidiary Company

Indian Toners USA Co.(WOS)

b) Related Parties over which the KMP has a significant influence

Jain Tube Co.Ltd.

Shrilon India LLP

c) Key Management Personnel :

Mr.Sushil Jain, (Chairman & Managing Director)

Mr. Akshat Jain (Whole Time Director from 01.04.2018)

Mr. Sanjeev Goel ( Independent Director )

Mr. Arun Kumar Garg (Independent Director)

Ms. Neena Jain (Independent Director)

92


Mr. S.C. Singhal (Company Secretary)

Mr. N.K. Maheshwari (CFO)

d) Relative of KMP

Smt. Nandita Jain (Wife of Sushil Jain, CMD)

Smt. Devanshi Jain ( Daughter-in-law of Sushil Jain, CMD)

Ms. Ashima Jain (Daughter of Sushil Jain)

II transaction with Subsidiary Co. -Indian toners USA Co.(WOS)

(Rs in Lakhs)

Details in respect of transactions during the year 31.03.2019 31.03.2018

Investment in Share Capital 52.76 57.91

Sale 158.28 30.76

III transactions with Relatives of KMP

(Rs in Lakhs)


Remuneration to Nandita Jain - 7.89

Dividend paid to Nandita Jain 55.81 27.90

Dividend paid to Sushil Jain (HUF) 5.48 2.74

Dividend paid to Devanshi Jain 0.003 0.002

Dividend paid to Ashima Jain 34.31 17.16

IV transactions with Directors / KMP

(Rs in Lakhs)


1 Remuneration to Chairman & Managing Director

- Short Term Employee Benefits 184.08 151.31

- Post Employment Benefits - 35.73

- Other Long Term Employee Benefits 12.49 9.01

- Dividend paid 135.70 67.85

2 Remuneration to Whole time Director


- Other Long Term Employee Benefits 7.20 -


93


3 Remuneration to Chief Financial Officer



4 Remuneration to Company Secretary



- Dividend paid to Company Secretary 0.003 0.002

5 Dividend paid to Mr. Sanjeev Goyal 0.008 0.002

V Sitting Fees Paid to Independent Directors during the year is Rs 2.70 Lakhs (PY 3.20 Lakhs)

VI Outstanding Balances as at year end

(Rs in Lakhs)

Particulars As at

31.03.2019

As at

31.03.2018

Investment in Equity Share Capital of wholly owned subsidiary

co.:

Indian Toners USA Co. (WOS) 184.28 131.52

39 Disclosure as per Ind AS 33 ‘Earning Per Share’

Earnings per share (EPS) – EPS is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Numbers used for calculating

basic and diluted earnings per equity share are as stated below:

(Rs in lakhs)

Particulars Units 31.03.2019 31.03.2018

Profit after tax Rs. in Lakhs 2,041.50 2,422.35

Weighted Average Number of Shares outstanding

during the year

No.in Lakhs 131.62 131.62

Face Value per Share (Rs.) 10.00 10.00

Basic EPS in Rs 15.51 18.40

Diluted EPS in Rs 15.51 18.40

94


40 Disclosure as per Ind AS 37 ‘Provisions, Contingent liabilities and Contingent assets’

(Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Contingent liabilities & Commitments

Outstanding Letter of Credit issued by bank on behalf of company 2,152.97 2,058.89

Export Obligation against Advance Licence & Plant & Machineries 554.47 1,030.01

Bank Gurantee 22.85 17.50

Claim against company, disputed by Company, not acknowledged

as debts

Nil Nil

Commitments :

(i) Capital Commitment Nil Nil

Estimated amount of contracts remaining to be executed on capital

account (Net of advances)

(ii) Other Commitment Nil Nil

41 Disclosure as per Ind AS 113 ‘Fair Value Measurement’

A) Financial Instruments By Category/ Hierarchy

(Rs in lakhs)

Particulars Level of

hierarchy

31.03.2019

FVtPL FVtOCI Amortized

cost

Financial Assets:

Investments in Mutual Funds Unquoted 1 6881.11 -

Investments in Equity Share Unquoted - - 184.28

Investments in Bonds Unquoted 2,035.62 -

Trade Receivables 3 - - 1830.58

Cash and Cash Equivalents 3 - - 1066.68Bank balances other than cash and cash

equivalent

3 - - 386.57

Loans 3 - - 14.18Security Deposits 3 - - 142.81Other Financial Assets 3 - - 101.91

total Financial Assets 8,916.73 - 3,727.01

Financial Liabilities:

Borrowings 3 - -

Trade Payables 3 - 1,617.55

Other Financial Liabilities 3 - 117.15

total Financial Liabilities - - 1734.70

95


(Rs in lakhs)


hierarchy

31.03.2018

FVtPL FVtOCI Amortized

cost

Financial Assets:

Investments in Mutual Funds Unquoted 1 8,615.97 -

Investments in Equity Share Unquoted - - 131.52

Investments in Bonds Unquoted - -

Trade Receivables 3 - - 1742.27

Cash and Cash Equivalents 3 - - 450.45

Bank balances other than cash and cash

equivalent

3 - - 333.53

Loans 3 - - 36.55

Security Deposits 3 - - 147.70

Other Financial Assets 3 - - 111.53

total Financial Assets 8,615.97 - 2,953.55

Financial Liabilities:

Borrowings 3 - -

Trade Payables 3 - - 1,617.13

Other Financial Liabilities 3 - - 88.38

total Financial Liabilities - - 1705.51

The carrying amount of short term borrowings, trade payables, trade receivables, cash & cash equivalents

and other financial assets and liabilities are considered to be the same at their Fair values, due to their short term nature.

There are no transfers between Level 1, Level 2 and Level 3 during the years ended 31st March 2019 and

31st March 2018

42 Details of dues to Micro, Small and Medium Enterprises defined under the MSMED Act, 2006

As required by Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 the following

information is disclosed:

96


(Rs in lakhs)

S.

No.

Particular 2018-19 2017-18

a) Principal amount due and remaining unpaid to supplier at the end of the

accounting year

26.19 -

b) The amount of Interest paid by the buyer in terms of section 16 of the

MSME Act , along with the amount of the payment made to the supplier

beyond the appointed day during the year.

- -

c) The amount of interest due and payable for the period of delay in making

payment (which has been paid but beyond the appointed day during the

year) but without adding the interest specified under the MSME Act, 2006

- -

d) The amount of interest accrued and remaining unpaid at the end of the

accounting year.

- -

e) The amount of further interest remaining due and payable in succeeding

year, untill such date when the interest dues above are actually paid to

the small enterprises, for the purpose of disallowance of a deductible

expenditure under sec 23 of the MSME, Act ,2006.

- -

43 Disclosure as per Ind AS 107 ‘Financial instrument disclosure’

A) Capital Management

Risk management

For the purpose of Company’s Capital Management , Capital includes issued equity share capital.

‘Net Debt’ (total borrowings net of cash and cash equivalents and other bank balances) divided by ‘Total

Equity’

the gearing ratios were as follows:

(Rs in lakhs)

Particulars 31.03.2019 31.03.2018

Net debt No Debt No Debt

Total equity 17986.31 16443.10

Net debt to equity ratio NA NA

B) Financial Risk management

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the

company’s risk management framework.

97


The Company through three layers of defence namely policies and procedures, review mechanism and

assurance aims to maintain a disciplined and constructive control environment in which all employees

understand their roles and obligations. The Audit committee of the Board with top management oversee the

formulation and implementation of the risk management policies. The risk are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

- credit risk (see(i);

- liquidity risk (see(ii); and

- market risk (see(iii).

i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers

and investments.

a) The carrying amount of financial assets represents the maximum credit risk as on reporting date

Trade receivables and other financial assets

The Company has established a credit policy under which new customer is analysed individually for

creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer

and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as

per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including

whether they are an individual or a legal entity, whether thay are institutional, dealers or end-user customer,

their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

b) Provision for Expected credit loss:

(i) Financial assets for which loss allowance is measured using 12 month expected credit losses.

With regard to all financial assets with contractual cash flows, other than trade receivables, management belives these to be high quality assets with negligible credit risk. The management believes that the parties

from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no provision for excepted loss has been provided on these

financial assets.

(ii) Financial assets for which loss allowance is measured using life time expected credit losses

The Company provides loss allowance on trade receivables using life time expected credit loss and as per

simplified approach.

98


Based on internal assessment which is driven by the historical experience/current facts available in relation to

default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company

estimates its allowance for trade receivable using lifetime expected credit loss.

c) Ageing of trade receivables

The Ageing of trade receivables is as below:

(Rs in lakhs)

Ageing 0-90 days 90-365 days 1 Year & above total

Gross Carrying amount as on 31.03.2019 1081.92 702.67 45.99 1,830.58

Impairment loss recognised on above - - - -

Gross Carrying amount as on 31.03.2018 1634.82 107.44 - 1,742.26


ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk

damage to the Company’s reputation.

The Company’s treasury department is responsible for managing the short-term and long-term liquidity

requirements. Short term liquidity situation is reviewed daily by the treasury department. Longer term liquidity

position is reviewed on a regular basis by the Company’s Board of Directors and appropriate decisions are

taken according to the situation.

Exposure to liquidity risk

The following are the contractual maturities of financial liabilities based on contractual cash flows.

As at 31st March 2019 (Rs in lakhs)

Particulars Within 1 year More than 1

year

total

Trade payables 1,617.55 - 1,617.55

Other financial liabilities 35.21 81.94 117.15

total 1,652.76 81.94 1,734.70

As at 31st March 2018

Particulars Within 1 year More than 1

year

total

Trade payables 1,617.13 - 1,617.13

Other financial liabilities 11.77 76.61 88.38 total 1,628.90 76.61 1,705.51

99


iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will

affect the Company’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising

the return.

a) Currency risk

The company operates internationally and portion of the business is transacted in several currencies and

consequently the company is exposed to foreign exchange risk through its Sale and Purchase from overseas

suppliers in various foreign currencies.

The company evaluate exchange rate exposure arising from foreign currency transaction and the company

follow established risk management policies.

Exposure to currency risk

The summary quantitative data about the Company’s exposure to currency risk as reported to the management

of the Company is as follows:

(Rs in lakhs)

Particular 31st March 2019

JPY Amount in INR Amount in

USD

Amount in

INR

Trade Receivables - - 4.96 345.42

Cash & Cash Equivalents 0.006 0.38

Total - - 4.964 345.802

Trade payables 69.13 43.14 17.34 1199.10

Total 69.13 43.14 17.34 1,199.10

Net exposure (69.13) (43.14) (12.37) (853.30)


Amount in

JPY

Amount in INR Amount in

USD

Amount in

INR


Cash & Cash Equivalent 0.002 0.194 0.002 0.108

Total 0.002 0.194 7.588 494.502

Trade payables - - 21.16 1,379.02

Total - - 21.16 1,379.02

Net exposure 0.002 0.194 (13.57) (884.52)

100


Sensitivity analysis

A reasonable possible strengthening/ weakening of the USD or INR against all other currencies at year

end would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and

purchases.

1% increase or decrease in foreign exchanges rates will have the following impact on profit before tax.

(Rs in lakhs)

Particulars 2018-19 2017-18

1%

increase

1% decrease 1% increase 1% decrease

USD (10.57) 6.54 (8.91) 8.79

Euro - - 0.0019 (0.0019)

JPY (0.43) 0.44 - -

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. In order to optimize the Company’s position with regards to interest

income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive

corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Exposure to interest rate risk

The Company doesn’t have any borrowings . Hence the the Company is not exposed to Interest rate risk.

44 Disclosure as per Ind AS 108 ‘Operating Segment’

There is no separate reportable segment as the company is predominantly engaged in only one segment i.e.

Toners’ therefore, Indian Accounting standard-108 to Operating Segment issued by the Institute of Chartered Accountants of India, is not applicable to it.

Geographical Segment: (Rs in lakhs)

Particulars 31.03.2019 31.03.2018

i) Domestic Sales 8538.95 8434.59

ii) Export Sales (including export benefits) 3098.29 2759.12

iii) Trading Sales 13.30 -

iv) Export Trading Sales 47.24 -

total 11697.78 11193.71

101


Detail of Sales:

(Rs. In Lakhs)

Particulars 31.03.2019 31.03.2018

Sales 11697.78 11193.71

Less : Discount & Allowances 365.49 297.76

Net Sales 11332.29 10895.95

45 Other Disclosures to Statement of Profit & Lossa) Expenses incurred in Foreign Currency

i) Value of imports calculated on C.I.F basis

(Rs in lakhs)

Particulars 31.03.2019 31.03.2018

Raw material 4419.41 4,501.66

Stores and Spares 15.38 7.16

total 4,434.79 4,508.82

ii) Other Expenses

(Rs in lakhs)

Particulars 31.03.2019 31.03.2018

Travel 17.95 22.01

Legal & Professional Expense 30.68 -

Others (Exhibition, Advertisement etc.) 24.35 23.32

total 72.98 45.33

b) Earning in Foreign Currency

(Rs in lakhs)

Particulars 31.03.2019 31.03.2018

FOB Value of Export 3,137.76 2,740.09

total 3,137.76 2,740.09

c) Payment to Auditors (excluding GST )

(Rs in lakhs)

Particulars 31.03.2019 31.03.2018

Fees for Statutory Audit* 4.50 4.00

Fees for Tax Audit* 1.50 0.75

Fees fo Certification - 1.25

total 6.00 6.00

102


d) Derivative instruments and unhedged foreign currency exposures

(Rs in lakhs)


Amount in

USD

Amount in INR Amount in JPY Amount in

INR

Foreign Currency Payables 17.34 1,199.10 69.13 43.14

Foreign Currency Receivables 4.96 345.80 - -

Rs in Lakhs


Amount in

USD

Amount in INR Amount in JPY Amount in

INR



e) Details of Research & Development Expenses :

(Rs in lakhs)

Particulars 31.03.2019 31.03.2018

Material Consumed 1.25 2.13

Salary, Wages and Bonus 25.78 15.34

Electricity 1.67 2.71

Depreciation 27.07 25.96

Others 30.48 17.33

total 86.25 63.47

46 Disclosure of Corporate social responsibility(CSR)

As per section 135 of Companies Act the company is required to spend in every financial year , at least 2% of the average net profits of the company made during the three immediately preceding financial year in accordance with its CSR policy.

A. Gross amount required to be spent by the Company during the year 2018-19 - Rs.41.31 Lakhs (Year 2017-18 - Rs. 33.22 Lakhs)

B. Amount paid during the year on:

(Rs in lakhs)


Prime Minister National Releif Fund 36.51 31.13

Others 4.80 2.09

total 41.31 33.22

103


47 The Board of Directors have recommended a dividend of Rs 1.50/- per share of face value of Rs 10/- each

subject to the approval of the members of the company at its Annual General Meeting.

48 Previous year figures have been re-grouped / re-classified wherever necessary to correspond with the current years classification disclosure.

49 The financials statements has been approved by the Board on 20th May, 2019.




FRN No.: 001604N

(MANISh K.GARG ) (SANJEEV GOEL) (SUShIL JAIN)





104

INDIAN tONERS & DEVELOPERS LtD.INDEPENDENt AUDItOR’S REPORt

tO thE MEMBERS OF INDIAN tONERS &

DEVELOPERS LIMItED

Report on the Audit of the Consolidated Financial

Statements FOR thE YEAR ENDED 31St MARCh,

2019

Opinion

1. We have audited the accompanying consolidated

financial statements of Indian toners &

Developers Limited (“the Holding Company”),

and its subsidiary (the Holding Company and its

subsidiary together referred to as ‘the Group’)

which comprise the Consolidated Balance Sheet

as at March 31, 2019, the Consolidated Statement

of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes

in Equity and the Consolidated Statement of Cash

Flows for the year ended on that date, and a

summary of the significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information


aforesaid consolidated financial statements give the information required by the Companies Act, 2013

(“the Act”) in the manner so required and give

a true and fair view in conformity with the Indian

Accounting Standards prescribed under section

133 of the Act read with the Companies (Indian

Accounting Standards) Rules, 2015, as amended,

(“IndAS”) and other accounting principles generally

accepted in India, of the consolidated state of

affairs (consolidated financial position) of the Company as at March 31, 2019, the consolidated

profit and loss (consolidated financial performance including other comprehensive income), changes

in consolidated equity and its consolidated cash

flows for the year ended on that date.Basis for Opinion

3. We conducted our audit of the consolidated

financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities

under those Standards are further described in

the Auditor’s Responsibilities for the Audit of the

Consolidated Financial Statements section of our

report. We are independent of the Company in

accordance with the Code of Ethics issued by the

Institute of Chartered Accountants of India (ICAI)

together with the ethical requirements that are

relevant to our audit of the financial statements under the provisions of the Act and the Rules

made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these

requirements and the ICAI’s Code of Ethics. We

believe that the audit evidence we have obtained

is sufficient and appropriate to provide a basis for our audit opinion on the Consolidated Financial

Statements.

Key Audit Matters

4. Key audit matters are those matters that, in our

professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed

in the context of our audit of the consolidated

financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate

opinion on these matters. We have determined that

there are no key audit matters to be communicated

in our report.

Information Other than the Consolidated Financial

Statements and Auditor’s Report thereon

5. The Holding Company’s Board of Directors is

responsible for the other information. The other

information comprises the information included

in the Management Discussion and Analysis

Board’s Report including Annexures to Board’s

Report, Business Responsibility Report, Corporate

Governance and Shareholder’s Information,

but does not include the consolidated financial statements and our auditor’s report there on. Our

opinion on the consolidated financial statements does not cover the other information and we do

not express any form of assurance conclusion

thereon.

6. In connection with our audit of the consolidated

financial statements, our responsibility is to read the other information and, in doing so, consider

whether the other information is materially

inconsistent with the consolidated financial statements or our knowledge obtained during

the course of our audit or otherwise appears to

be materially misstated. If, based on the work

we have performed, we conclude that there is a

material misstatement of this other information, we

are required to report that fact. We have nothing to

report in this regard.

105


Management’s Responsibility and those charged

with Governance for the Consolidated Financial

Statements

7. The Holding Company’s Board of Directors is

responsible for the matters stated in section

134(5) of the Act with respect to the preparation

of these consolidated financial statements that give a true and fair view of the consolidated

state of affairs (consolidated financial position), consolidated profit & loss (consolidated financial performance including other comprehensive

income), consolidated changes in equity and

consolidated cash flows of the Group in accordance with the IndAS and other accounting

principles generally accepted in India. This

responsibility also includes maintenance of

adequate accounting records in accordance with

the provisions of the Act for safeguarding the

assets and for preventing and detecting frauds and

other irregularities; selection and application of

appropriate accounting policies; making judgments

and estimates that are reasonable and prudent;

and design, implementation and maintenance

of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,

relevant to the preparation and presentation of

the consolidated financial statements that give a true and fair view and are free from material

misstatement, whether due to fraud orerror.

These financials statement have been used for the purpose of preparation of the consolidated

financial statement by the Directors of the Holding Company, as aforesaid.

8. In preparing the consolidated financial statements, management is responsible for assessing the

Group’s ability to continue as a going concern,

disclosing, as applicable, matters related to going

concern and using the going concern basis of

accounting unless management either intends to

liquidate the Groupor to cease operations, or has

no realistic alternative but to doso.

9. The Board of Directors are responsible for

overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the

Consolidated Financial Statements

10. Our objectives are to obtain reasonable assurance

about whether the consolidated financial

statements as a whole are free from material

misstatement, whether due to fraud or error, and to

issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in

accordance with SAs will always detect a material

misstatement when it exists. Misstatements can

arise from fraud or error and are considered

material if, individually or in the aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the basis of

these consolidated financial statements.11. As part of an audit in accordance with SAs, we

exercise professional judgment and maintain

professional skepticism throughout the audit. We

also:

a) Identify and assess the risks of material

misstatement of the consolidated financial statements, whether due to fraud or error, design

and perform audit procedures responsive to those

risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement

resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery,

intentional omissions, misrepresentations, or the

override of internal control.

b) Obtain an understanding of internal controls

relevant to the audit in order to design

audit procedures that are appropriate in the

circumstances. Under section 143(3)(i) of the Act,

we are also responsible for expressing our opinion

on whether the holding company has adequate

internal financial controls system in place and the operating effectiveness of such controls.

c) Evaluate the appropriateness of accounting

policies used and the reasonableness of

accounting estimates and related disclosures

made by management

d) Conclude on the appropriateness of management’s

use of the going concern basis of accounting and,

based on the audit evidence obtained, whether

a material uncertainty exists related to events or

conditions that may cast significant doubt on the Group’s ability to continue as a going concern.

If we conclude that a material uncertainty

exists, we are required to draw attention in

our auditor’s report to the related disclosures

106


in the consolidated financial statements or, if such disclosures are inadequate, to modify our

opinion. Our conclusions are based on the audit

evidence obtained up to the date of our auditor’s

report. However, future events or conditions may

cause the Group to cease to continue as a going

concern

e) Evaluate the overall presentation, structure and

content of the consolidated financial statements, including the disclosures, and whether the

consolidated financial statements represent the underlying transactions and events in a manner

that achieves fair presentation.

12. Materiality is the magnitude of misstatements in the

consolidated financial statements that, individually orin aggregate, makes it probable that the economic

decisions of a reasonably knowledgeable user

of the consolidated financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope

of our audit work and in evaluating the results

of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial statements

13. We communicate with those charged with

governance regarding, among other matters,

the planned scope and timing of the audit and

significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

14. We also provide those charged with governance

with a statement that we have complied

with relevant ethical requirements regarding

independence, and to communicate with

them all relationships and other matters that

may reasonably be thought to bear on our

independence, and where applicable, related

safeguards.

15. From the matters communicated with those

charged with governance, we determine those

matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit

matters. We describe these matters in our auditor’s

report unless law or regulation precludes public

disclosure about the matter or when, in extremely

rare circumstances, we determine that a matter

should not be communicated in our report because

the adverse consequences of doing so would

reasonably be expected to outweigh the public

interest benefits of such communicationReport on Other Legal and Regulatory

Requirements

16. As required by Section 143(3) of the Act, based on

our audit we report the extent applicable that:

a) We have sought and obtained all the information

and explanations which to the best of our

knowledge and belief were necessary for the

purposes of our audit of the aforesaid consolidated

financial statements.b) In our opinion, proper books of account as required

by law have been kept by so far as it appears from

our examination of those books.

c) The Consolidated Balance Sheet, the Consolidated

Statement of Profit and Loss including Other Comprehensive Income, Consolidated Statement

of Changes in Equity and the Consolidated

Statement of Cash Flow dealt with by this Report

are in agreement with the relevant books of

account maintained for the purpose of preparation

of the consolidated financial statements.d) In our opinion, the aforesaid consolidated

financial statements comply with the IndAS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014

e) On the basis of the written representations

received from the directors as on March 31,

2019 taken on record by the Board of Directors

of the Holding Company, none of the directors is

disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164

(2) of the Act.

f) With respect to the adequacy of the internal

financial controls over financial reporting of the Holding Company and its subsidiary, and

the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.

Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting

17. With respect to the other matters to be included

in the Auditor’s Report in accordance with the

requirements of section 197(16) of the Act, as

amended:

107


In our opinion and to the best of our information and

according to the explanations given to us, Holding

Company and its subsidiary covered under the

Act. paid remuneration to their respective directors

during the year is in accordance with the provisions

of section 197 of the Act read with Schedule V

to the Act. Further, we report that the provision

of Sec 197 read with Schedule v to the Act are

not applicable to its subsidiary company, since

subsidiary is not a public company as defined under section 2(71) of the Act.

18. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of

the Companies (Audit and Auditors) Rules, 2014,

as amended in our opinion and to the best of

our information and according to the explanations

given to us:

i) The group has no pending litigations which

has impact on its consolidated financial statements.

ii) The group did not have any long term

contracts and had no derivative contracts

outstanding as at 31st March 2019.

iii) There has been no delay in transferring

amounts, required to be transferred, to the

Investor Education and Protection Fund by

the Holding Company and its subsidiary.

For M.L. GARG & COMPANY


FRN 001604N

(MANISh K. GARG)

PARtNER

M. NO. 96238

PLACE: NEW DELhI

DAtE : 20th May, 2019

ANNEXURE “A” tO thE INDEPENDENt AUDItOR’S

REPORt OF EVEN DAtE ON thE CONSOLIDAtED

FINANCIAL StAtEMENtS OF INDIAN tONERS &

DEVELOPERS LIMItED

(Referred to in paragraph (II 1F) under ‘Report on

other Legal and Regulatory Requirements’ of our

report of even date)

REPORt ON thE INtERNAL FINANCIAL CONtROLS

UNDER CLAUSE (I) OF SUB-SECtION 3 OF SECtION

143 OF thE COMPANIES ACt, 2013 (“thE ACt”)

In conjunction with our audit of the consolidated

financial statements of Indian toners & Developers

Limited (the “Holding Company”) & it subsidiaries

(the holding company and its subsidiary together

referred to as “the Group”) as at the and for the

year ended 31st March, 2019, we have audited the

internal financial controls over financial reporting of the Holding Company and its one subsidiary covered

under the Act, as at that date.

MANAGEMENt’S RESPONSIBILItY FOR INtERNAL

FINANCIAL CONtROLS

The Holding Company’s and its subsidiaries

management is responsible for establishing and

maintaining internal financial controls based on “the internal control over financial reporting criteria established by the Company considering the essential

components of internal control stated in the Guidance

Note on Audit of Internal Financial Controls over

Financial Reporting issued by the Institute of Chartered

Accountants of India”. These responsibilities include the

design, implementation and maintenance of adequate

internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the

safeguarding of its assets, the prevention and detection

of frauds and errors, the accuracy and completeness

of the accounting records, and the timely preparation

of reliable financial information, as required under the Companies Act, 2013.

AUDItORS’ RESPONSIBILItY

Our responsibility is to express an opinion on the Group’s

internal financial controls over financial reporting based on our audit. We conducted our audit in accordance

with the Guidance Note on Audit of Internal Financial

Controls over Financial Reporting (the “Guidance

Note”) and the Standards on Auditing, issued by ICAI

and deemed to be prescribed under section 143 (10)

of the Companies Act, 2013, to the extent applicable to

an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both

issued by the Institute of Chartered Accountants of

India. Those Standards and the Guidance Note require

that we comply with ethical requirements and plan

108


and perform the audit to obtain reasonable assurance

about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit

evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting includes obtaining an understanding of internal

financial controls over financial reporting, assessing the risk that a material weakness exists, and testing

and evaluating the design and operating effectiveness of internal control based on the assessed risk. The

procedures selected depend on the auditor’s judgement,

including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit opinion on the Holding Company and its subsidiaries

internal financial controls system over financial reporting.

MEANING OF INtERNAL FINANCIAL CONtROLS

OVER FINANCIAL REPORtING

A company’s internal financial control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of

records that, in reasonable detail, accurately and fairly

reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance

that transactions are recorded as necessary to permit

preparation of financial statements in accordance with generally accepted accounting principles, and

that receipts and expenditures of the company are

being made only in accordance with authorisations of

management and directors of the company; and (3)

provide reasonable assurance regarding prevention

or timely detection of unauthorised acquisition, use, or

disposition of the company’s assets that could have a

material effect on the financial statements.

INhERENt LIMItAtIONS OF INtERNAL FINANCIAL

CONtROLS OVER FINANCIAL REPORtING

Because of the inherent limitations of internal

financial controls over financial reporting, including the possibility of collusion or improper management

override of controls, material misstatements due to

error or fraud may occur and not be detected. Also,

projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree

of compliance with the policies or procedures may

deteriorate.

OPINION

In our opinion, the Holding Company and its one

subsidiary, have in all material respects, an adequate

internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019, based on “the internal control over

financial reporting criteria established by the Holding Company and its subsidiary considering the essential

components of internal control stated in the Guidance

Note on Audit of Internal Financial Controls over

Financial Reporting issued by the Institute of Chartered

Accountants of India”

For M.L. GARG & COMPANY


FRN 001604N

(MANISh K. GARG)

PARtNER

M.NO. 96238

PLACE : NEW DELHI

DATE: 20TH MAY, 2019

109

INDIAN TONERS & DEVELOPERS LTD.

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2019(Rs. In Lakhs)

Particulars Note

No.

As at 31st

March, 2019

As at 31st

March, 2018

I. ASSETS

(1) Non-Current Assets

(a) Property, Plant & Equipment 2 5,179.78 5,188.07

(b) Capital Work in progress 3 87.56 94.62

(c) Intangible Assets 4 3.63 4.14

(d) Financial assets

(i) Investments 5 7,870.96 6,453.79

(ii) Other Financial Assets 6 213.23 208.90

(e) Deferred tax Assets 7 - -

(f) Other Non Current Assets 8 115.56 51.26

(2) Current Assets

(a) Inventories 9 1,870.88 1,354.38

(b) Financial assets

(i) Current Investments 10 1,045.77 2,162.18

(ii) Trade Receivables 11 1,789.90 1,719.64

(iii) Cash and cash equivalents 12 1,077.05 482.69

(iv) Bank Balances other than(iii)above 13 386.57 333.53

(v) Loans 14 14.17 36.55

(vi) Other Financial Assets 6 31.49 50.33

(c) Current Tax Assets(net) 15 - 33.72

(d) Other Current Assets 8 369.09 559.20

TOTAL ASSETS 20,055.64 18,733.00

II. EQUITY AND LIABILITIES

EQUITY

(a) Equity Share Capital 16 1,316.16 1,316.16

(b) Other Equity 17 16,518.52 15,035.03

LIABILITIES

(1) Non-Current Liabilities

(a) Other Financial Liabilities 18 81.94 76.61

(b) Provisions 19 63.81 79.42

(c) Deferred Tax Liabilities 7 54.54 180.86

(2) Current Liabilities

(a) Financial liabilities

(i) Trade Payables 20

‘ Total Outstanding dues of Micro Enterprises and Small Enterprises 26.19 -

‘- Total outstanding dues of creditors other than Micro Enterprises

and Small Enterprises

1,591.36 1,617.83

(ii) Other financial liabilities 18 35.21 11.77

(b) Other current liabilities 21 320.43 400.05

(c) Provisions 19 28.65 15.27

(d) Current Tax Liabilities (Net) 15 18.83 -

TOTAL EQUITY & LIABILITIES 20,055.64 18,733.00

Significant Accounting Policies 1 The accompanying notes form an integral part of these

Financial statements




FRN No.: 001604N

(MANISH K.GARG ) (SANJEEV GOEL) (SUSHIL JAIN)



Place: Delhi (S.C.SINGHAL) (N.K.MAHESHWARI)


110


CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH, 2019

(Rs in Lakhs)

ParticularsNote

No.

Year ended 31st

March, 2019

Year ended 31st

March, 2018

REVENUE :

Revenue from Operations (Net) 22 11,528.67 11,232.07

Other Income 23 649.04 722.34

Total Revenue 12,177.71 11,954.41

EXPENSES:

Cost of Materials Consumed 24 5,108.11 4,810.61

Purchase Of Trading Goods 82.36

Other Manufacturing Expenses 25 1,724.66 1,614.48

Change in Inventories of Finished goods & Work-in-process 26 (144.25) (138.58)

Employee Benefit Expenses 27 1,448.93 1,333.76

Excise Duty - 5.48

Finance Costs 28 63.10 56.79

Depreciation and Amortization Expense 29 377.09 367.57

Other Expenses 30 1,018.48 952.93

Total Expenses 9,678.48 9,003.04

Profit before Exceptional and Extraordinary items and Tax 2,499.23 2,951.37

Exceptional items 31 30.68 -

Profit before Extraordinary items and Tax 2,468.55 2,951.37

Extraordinary Items - -

Profit before Tax 2,468.55 2,951.37

Tax expense:

(1) Current Tax (519.50) (533.01)

(2) Taxes in respect of earlier years (76.56) (11.10)

(3) Deferred Tax 14.40 24.79

(4) MAT Credit Entitlement 106.33 (26.82)

(5) Excess/ Short Provision adjusted -

Profit for the year 1,993.22 2,405.23

Other comprehensive income

a) Items that will not be reclassified to profit or loss (31.41) (16.65)

(i) Reamusrement benefit of defined benefit Plant

(ii) Income Tax Expenses on reameasurement benefit of defined benefit plan 9.15 5.76

b) Items that will be reclassified to profit or loss - -

(i) Foreign Currency translation difference for foreign operation 1.03 (0.03)

(ii)Income tax relating to items that will be reclassified to profit or loss - -

Total comprehensive income for the period 1,971.99 2,394.31

Earning per equity share of Rs. 10/- each

(1) Basic (In Rs.) 15.14 18.27

(2) Diluted (In Rs.) 15.14 18.27

Significant Accounting Policies 1

The accompanying notes form an integral part

of these financial statements




FRN No.: 001604N






111


( Rs. In Lakhs )

OTHER EQUITY Reserves and Surplus Comprehensive

Income

Total

Capital

Redemption

Reserve

Revaluation

Reserve

Capital

Reserve

General

Reserve

Surplus /


comprehensive

income

Balance as at 01.04.2018 - 530.72 - 5,240.74 9,285.99 (22.42) 15,035.03


other adjustments - - - - (12.46) - (12.46)

Foreign Currency translation Differences for Foreign Operations

- - - - 0 1.03 1.03

other increase/reduction during the year - - - - - - -

Items of OCI for the year ended, net of tax- - - - - - - -

- Remeasurement benefit of defined benefit plans - - - - - (22.26) (22.26)

Total Comprehensive Income for the year

2018-19 (A)

- 530.72 - 5,240.74 11,266.75 (43.65) 16,994.56



Tax on Dividend - - - - 81.19 - 81.19

Transferred to / (from) - Surplus / (Deficit) - - - - - - -

Transferred to / (from) - Revaluation Reserve - - - - - - -

Total (B) - - - - 476.04 - 476.04

Balance as at 31.03.2019 (A)-(B) - 530.72 - 5,240.74 10,790.71 (43.65) 16,518.52

Statement of Change in Equity

a) Equity Share Capital ( Rs. In Lakhs )


Balance as at 1st April 2017 Changes in equity share Balance as at 31st March

2018

1316.16 - 1316.16


Balance as at 1st April 2018 Changes in equity share

capital during the year

Balance as at 31st March

2019

1316.16 - 1316.16

b) Other Equity




FRN No.: 001604N






112


CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2019

(Rs. In Lakh)

Sr.

No


31.03.2019

Year ended

31.03.2018

A. CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit Before Tax 2,468.55 2,951.37

Adjustment for :

Depreciation & Amortisation 377.09 367.57

Loss/(profit) on sale of (PPE ) - 7.93

Loss/(profit) on sale of Investments (15.92) (10.73)

Finance Cost (Interest Expenses) 63.10 56.79

Interest income (80.47) (55.20)

Provision for Employees Benefits ( Leave Encashment ) (2.22) 9.95

Re-measurement of defined benefit plans transferred to OCI 31.41 16.65

Liabilities / Provisions no longer required written back /Sundry Balances Write off/back (33.14) (9.07)

Unrealised Foreign Exchange Fluctuation (Gain ) / Loss (31.51) 11.80

Income from Current Investment (Non Trade)- Dividend (90.09) (109.94)

Gain on Mark to Market of Investments (409.50) (369.04)

Operating Profit before Working Capital Changes 2,277.30 2,868.08

Adjustment for :

(Increase)/Decrease in Inventories (516.50) (195.62)

(Increase)/Decrease in Trade Receivables (70.26) (303.71)

(Increase)/Decrease in Loans and Other Assets 231.33 (247.64)

Increase/(Decrease) in Trade Payables , Provisions & Other Liabilities (56.45) 452.00

Cash generated from operations 1,865.42 2,573.11

Direct Taxes (paid)/ Refund (Net) (500.67) (705.43)

Net Cash Inflow/(outflow) from Operating Activities (A) 1,364.75 1,867.68

B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of PPE / Capital Advances & Capital Work-in-Progress (544.49) (379.04)

Purchase of Investments(net of sales) 193.61 (1,318.29)

Proceeds from sale of PPE 1.07 4.66

Movement in Other Bank Deposits (net) (53.04) (11.76)

Interest Received 80.47 55.20

Dividend Received 90.09 109.95

Net Cash Inflow/(Outflow) from Investing Activities (B) (232.29) (1,539.28)

C. CASH FLOW FROM FINANCING ACTIVITIES :

Dividend Paid (including DDT) (476.03) (343.80)

Finance Cost Paid ( Interest Paid ) (63.10) (56.79)

Net cash Inflow/(Outflow) from Financing Activities (C) (539.13) (400.59)

113


D. FOREIGN CURRENCY TRANSACTION DIFFERENCE ON

CONSOLIDATION

Net cash Inflow/(Outflow) in course of Foreign Currency (D) 1.03 (0.03)

Net increase/ (Decrease) in Cash and Cash Equivalents (A+B+C+D) 594.36 (72.23)

Add: Cash and cash equivalents at the beginning of the year 482.69 554.92

Cash and cash equivalents at the End of the year 1,077.05 482.69

Components of cash & cash equivalents:

- Balance with Banks : On current accounts 1,073.20 478.66

- Cash on hand 3.85 4.03

1,077.05 482.69

Note:

1 The Cash Flow Statement has been prepared under the indirect method as set out in Indian Accounting Standard

- 7”Cash Flow Statements” as notified by the Central Government of India.2 Acquisition/Purchase of PPE includes movement of capital work in progress, Intangible assets under development

and capital advances & capital payable, paid during the year.

3 Previous year’s figures have been re-grouped / re-arranged whererver considered necessary to confirm to make them comparable.




FRN No.: 001604N






(Rs. In Lakh)

Sr.

No


31.03.2019

Year ended

31.03.2018

114


Notes to the Consolidated Financial Statements as at and for the year ended 31.03.2019

1 ACCOUNTING POLICIES

i) Group Overview: The Group,Indian Toners & Developers Limited( parent) & its wholly owned subsidiary ITDL USA manufactures

Toners only. The Companys maufacturing units are located at Rampur & Sitarganj.

These Consolidated Financial Statements were approved and adopted by Board of directors of the Company in

their meeting held on May 20, 2019.

ii) Basis of preparation of Consolidated Financial Statements:

a) The Consolidated Financial Statements relates to the Group. Subsidiary are those entities in which the parent

directly or indirectly has interest more than 50% of the voting power or otherwise control the composition of

the board or governing body so as to obtain economic benefits from activities.The Consolidated financial statements have been prepared on the following basis:-

i) The Consolidated Financial Statements of the subsidiary is combined on, line by line basis by adding

together the like items of assets, liabilities, income & expenses after fully eliminating the intra group

balances and intra group transactions and unrealised profits & losses in accordance with Ind AS 110- Consolidated Financial Statements notified under the provisions of section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as amended time to time.

The Consolidated Financial Statementss (CFS) comprises the Consolidated Financial Statements of

Indian Toners & Developers Limited (ITDL) and its following Subsidiary as on March 31, 2019.

Name of the Company Nature Country of incorporation % of Shareholding & Voting

ITDL USA Subsidiary USA 100%

ii) In case of foreign subsidiaries, revenue items are consolidated at the average exchange rate during

the year.All assets and liabilities are translated at year end exchange rate. The resulting exchange

differences are recognised as Other Comprehensive Income/(loss) and disclosed accordingly.

b) The company has adopted all the Ind AS standards and the adoption was carried out in accordance with

Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Indian

Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule

7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP

Accounting policies have been consistently applied except where a newly issued accounting standard is

initially adopted or are vision to an existing accounting standard requires a change in the accounting policy

hitherto in use.

c) Functional and Presentation currency

These Consolidated Financial Statements are presented in Indian Rupees (INR), which is the Company’s

functional currency. All financial information presented in INR has been rounded to the nearest Lakhs (upto two decimals), except as stated otherwise.

iii) Use of Estimates

The preparation of the Consolidated Financial Statements in conformity with Ind AS requires the

management to make estimates, judgments and assumptions. These estimates, judgment and

assumptions affect the application of accounting policies and the reported amount of Assets and Liabilities and disclosure of Contingent Liabilities on the date of the Consolidated Financial Statements

and reported amounts of revenues and expenses for the year. Accounting estimate could change from

year to year. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in estimates are reflected in the Consolidated Financial Statementss in the period in which the changes are made and if material, their effects are disclosed in the notes to Consolidated Financial Statements.

115


iv) Current and Non-Current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is current when it is:

• Expected to be realized or intended to sold or consumed in normal operating cycle;• Held primarily for the purpose of trading;• Expected to be realized within twelve months after the reporting period; or• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for atleast twelve

months after the reporting period. All other assets are classified as non-current.A liability is current when:

• It is expected to be settled in normal operating cycle;• It is held primarily for the purpose of trading;• It is due to be settled within twelve months after the reporting period; or• There is no unconditional right to defer settlement of the liability for atleast twelve months after the reporting

period. All other liabilities are classified as non-current.v) Property, Plant and Equipments

a) Initial recognition and measurement

An item of property, plant and equipments recognized as an asset if and only if it is probable that future

economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.

Property, plant and equipment are considered at deemed cost, less accumulated depreciation/amortizaton

and accumulated impairment losses, if any except Land which was shown at Fair value. Cost includes

expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes & duties. Costs

directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use,

as intended by management. The company depreciates property, plant and equipment over their estimated

useful lives using the straight-line method.

When parts of an item of property, plant and equipment have different useful lifes, they are recognized separately.

Stores and spare parts having life more than 12 months are capitalised at their respective carrying amount

with the main asset and are being depreciated over remaining life of main asset prospectively.

Property, Plant and Equipments which are not ready for intended use as on the date of Balance Sheet are

disclosed as ‘Capital Work-In-Progress’.

The Company assesses at each balance sheet date whether there is any indication that a Property, plant and

equipment may have been impaired. If any such indication exists, the Company estimates the recoverable

amount of the Property, plant and equipment. If such recoverable amount of the Property, plant and equipment

or the recoverable amount of the cash generating unit to which the Property, plant and equipment belongs

is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is

treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount

is reassessed and the Asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

b) Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable

that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of

the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs

of the day-to-day servicing of Property, Plant and Equipment are recognized in Statement of profit or loss as incurred.

116


c) Derecognition

Property, Plant and Equipments are derecognized when no future economic benefits are expected from their use or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment

are determined by comparing the proceeds from disposal with the carrying amount of property, plant and

equipment, and are recognized in the statement of profit and loss.

d) Depreciation/amortization

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lifes of each part of an item of Property, Plant and Equipment . Leasehold lands are amortized over the lease term unless it is

reasonably certain that the Company will obtain ownership by the end of the lease term.

Depreciation on additions to/deductions from property, plant and equipment during the year is charged on

pro-rata basis from/up to the date on which the asset is available for use/disposed.

Depreciation on revalued Assets is calculated on their respective revalued amounts and is computed on the

basis of remaining useful life as estimated by the valuer on straight line method.

The company, based on technical assessment made by technical expert and management estimate,

depreciates certain items of property, plant and equipment over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that

these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

• Leasehold Land Lease Period

• Plant Buildings 30 years

• Leasehold Improvements Lease Period 9 Years • Plant & Equipment 20 years

• Furniture 10 years

• Office Equipment 5 years

• Computers 3 years

• Motor Vehicles 8 years

• Electric Installation 12 years

The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty to obtain

ownership at the end of the lease term.

vi) Intangible Assets

Intangible Assets are recorded at the consideration paid for acquisition less accumulated amortization and

accumulated impairment, if any. Amortization is recognized at Straight Line Basis over their estimated useful life’s.

The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquire separately are carried at cost less accumulated impairment losses.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included

in Statement of profit and loss within other income/ expenses.

Depreciation

Intangible assets that are acquired by the company are measured initially at cost. After initial recognition, intangible

assets are carried at its cost less any accumulated amortization and any accumulated impairment loss. Intangible

assets are amortized on Straight Line Basis over a period of 3 years.

vii) Financial Instrument

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

117


Financial Assets


All financial assets are recognized initially at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs are attributable to the acquisition or issue of the financial asset, otherwise charged to Statement of Profit & Loss.


Financial assets are subsequently classified and measured at:• Financial assets at amortised cost• Financial assets at fair value through profit and loss (FVTPL)• Financial assets at fair value through other comprehensive income (FVTOCI).

a) Trade Receivables

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised

cost, using the effective interest rate (EIR) method net of any expected credit losses wherever applicable. The EIR is the rate that discounts estimated future cash income through the expected life of financial instrument.

b) Debt instruments

i) Measured at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:

(a) The asset is held within a business model whose objective is to hold assets for collecting contractual

cash flows, and (b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the EIR method. Amortized cost is calculated by taking into account any discount or premium on acquisition

and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.

ii) Measured at FVTOCI (Fair Value through OCI)

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met: (a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and (b) The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting

date at fair value. Fair value movements are recognized in the OCI. However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to profit and loss. Interest earned while holding FVTOCI debt instrument is reported as interest income using the EIR method.

iii) Measured at FVTPL (Fair value through profit or loss)

Debt instruments does not meet the criteria for categorization as at amortized cost or as FVTOCI, is

classified as at FVTPL. The Company elects to classify the debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’). Debt

instruments included within the FVTPL category are measured at fair value with all changes recognized

in the Statement of profit and loss.

118


III Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company’s balance sheet) when:

• The contractual rights to receive cash flows from the asset have expired, or

• The Company has transferred its contratcual rights to receive cash flows from the asset.

IV Impairment of Financial Asset

Expected credit losses are recognized for all financial assets subsequent to initial recognition in Statement of Profit & Loss other than financials assets in FVTPL category.

For recognition of impairment loss on financial assets other than Trade receivables, the company determines whether there has been a sigificant increase in the credit risk since initial recogniton.

Financial liabilities


All financial liabilities are recognized at fair value . Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.


Financial liabilities are carried at amortized cost using the effective interest method. Amortized cost is calculated by taking into account any discount or premium on acquisition and any material transaction

that are any integral part of the EIR. For trade and other payables maturing within one year from the

balance sheet date, the carrying amounts approximate fair value due to the short maturity of these

instruments.

III Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

viii) Revenue Recognition

Revenue from sale of products is recognized when the significant risks and rewards of ownership of the products are transferred to the buyer, recovery of the consideration is reasonably assured and the amount of

revenue can be measured reliably. Revenues are shown net of discounts.

Dividend income is recognized when the right to receive the income is established. Income from interest on

deposits is recognized on time proportionate basis.

ix) Employee Benefits The company’s contribution to provident fund and pension fund, are charged on accrual basis to Statement

of Profit & Loss.

a) Expenses and Liabilities in respect of employee benefits are recorded in accordance with Indian Accounting Standard 19 - Employee Benefits issued by the ICAI.

b) Short-term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

c) Post employment and other long term employee benefits are recognised as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial

gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss.

Defined benefit costs which are recognized in the statement of profit and loss are categorized as follows:

119


- Service cost (including current service cost, past service cost. as well as gains and losses on curtailments

and settlements); and

- Net interest expense or income; and

Defined contribution plans

Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities and will have no legal or constructive obligation to pay further amounts. Provident Fund and Employee State Insurance are

Defined Contribution Plans in which company pays a fixed contribution and will have no further obligation beyond the monthly contributions and are recognised as an expenses in Statement of Profit & Loss.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Company pays Gratuity as per provisions of the Gratuity Act, 1972. Leave Encashment payable at the end of the

employment is also a post employment defined benefit plan. The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The discount rate is based on the prevailing market yields of Indian government securities as at

the reporting date that have maturity dates approximating the terms of the Company’s obligations and that are

denominated in the same currency in which the benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Any actuarial gains or losses pertaining to components of re-measurements of net defined benefit liability/(asset) are recognized in OCI in the period in which they arise.

The retirement benefit obligation recognized in the consolidated Balance Sheet represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reduction in future contributions to the plans.

The liability for termination benefit is recognized at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.

x) Valuation of Inventories

Inventories are stated at lower of cost or net realisable value. The cost for the purpose of valuation is computed on

the basis of weighted average price. The cost of work-in-progress and finished goods comprises of raw materials, direct labour, other direct costs, cost of conversion and appropriate portion of variable and fixed production overheads and such other costs incurred as to bring the inventory to its present location and condition. Net

realisable value is the estimate of the selling price in the ordinary course of business, less the estimated costs of

completion/reprocessing and the estimated cost necessary to make the sale.

xi) Foreign Currency Transactions and Translations

a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the

foreign currency amount the exchange rate between the reporting currency and the foreign currency on/or

closely approximating to the date of the transaction.

b) Conversion: Foreign currency monetary items, if any are reported using the closing rate. Non-monetary

items which are carried in terms of historical cost denominated in a foreign currency are reported using the

exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when

the values were determined.

120


c) Exchange Difference: Exchange differences arising on the settlement of monetary items, if any or on reporting such monetary items of the Company at rates different from those at which they were initially recorded during the year or reported in previous Consolidated Financial Statementss, are recognized as income or as

expenses in the year in which they arise.

d) Foreign Exchange Forward Contracts: Monetary Assets and Liabilities, if any are restated at the rate prevailing

at the period end or at the spot rate at the inception of forward contract where forward cover for specific asset/liability has been taken and in respect of such forward contracts the difference between the contract rate and the spot rate at the inception of the forward contract is recognized as income or expense in Statement

of Profit and Loss over the life of the contract. All other outstanding forward contracts on the closing date are mark to market and resultant loss is recognized as expense in the Statement of Profit and Loss. Mark to market gains, if any, are ignored. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognized as income or as expense for the period.

xii) Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably

requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed in respect of possible obligations that may arise from past events but their existence is

confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent Assets are neither recognized nor disclosed in the Consolidated Financial

Statementss. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the assets and related income are recognized in the period in which the change occurs.

xiii) Cash & Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of less than three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of cash in

hand and balance with banks including margin money.

xiv) Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part

of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready

for its intended use. All other borrowing costs are charged to Profit and Loss account.

xv) Income Tax

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net

profit or loss for the period.

Current Tax

Current tax expenses is based on the provisions of Income Tax Act, 1961 and judicial interpretations thereof as at

the Balance Sheet date and takes into consideration various deductions and exemptions to which the Company

is entitled to as well as the reliance placed by the Company on the legal advices received by it. Current tax assets

and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the current year and reversal of timing differences for earlier years. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted

or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there

is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation

121


or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of

such assets. Deferred tax assets are reviewed at each Balance Sheet date and are written-down or written-up

to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized. Deferred tax assets and deferred tax liabilities are offsets when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income

levied by the same governing tax laws.

xvi) Leases

As Lessee

Accounting for finance leases

Leases of Property, Plant and Equipment, if any, where the Company, as lessee has substantially all risks and

rewards of ownership are classified as finance lease. On initial recognition, assets held under finance leases are recorded as Property, Plant and Equipment and the related liability is recognized under borrowings. At inception

of the lease, finance leases are recorded at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability.

Accounting for operating leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating lease. Payments made under operating leases are recognized as an expense over the lease term.

xvii) Earnings Per Share

Basic Earning Per Share is calculated by dividing the net profit for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, net profit after tax during the year and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

xviii) Fair value measurement

The Company measures financial instruments, such as,derivatives at fair value at each balance sheet date.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date. The fair value measurement is based on the presumption

that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the company. The company uses

valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable

inputs. All assets and liabilities for which fair value is measured or disclosed in the Consolidated Financial

Statements are categorized within the fair value hierarchy, described as follows, based on the lowest level

input that is significant to the fair value measurement as a whole:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the Consolidated Financial Statements on a recurring basis,

the company determines whether transfers have occurred between levels in the hierarchy by re-assessing

122


categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Company determines the policies and procedures for both recurring fair

value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations.

xix) Cash Flow Statement

Cash Flow are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The

cash flow from regular revenue generating, financing and investing activities of the company are segregated. xx) Key accounting estimates and judgements

The preparation of the Company’s Consolidated Financial Statements requires the management to make

judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these

assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of

assets or liabilities affected in future periods.xxi) Recent accounting pronouncement issued but not yet effective upto the date of issuance of Consolidated

Financial Statements

Ind AS 116: Leases

On 30th March 2019, the Ministry of Corporate Affairs (MCA) has notified Ind AS 116 Leases, under Companies (Indian Accounting Standards) Amendment Rules, 2019 which is applicable with effect from 1st April, 2019.

Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for

both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lease accounting model

for lessee and requires the lessee to recognize right of use assets and lease liabilities for all leases with a term of

more than twelve months, unless the underlying asset is low value in nature. Currently, operating lease expenses

are charged to the statement of profit and loss. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17.

As per Ind AS 116, the lessee needs to recognise depreciation on rights of use assets and finance costs on lease liabilities in the statement of profit and loss. The lease payments made by the lessee under the lease arrangement will be adjusted against the lease liabilities.

The Company is currently evaluating the impact on account of implementation of Ind AS 116 which might have

significant impact on key profit & loss and balance sheet ratio i.e. Earnings before interest, tax, depreciation and amortisation (EBITDA), Asset coverage, debt equity, interest coverage, etc.

123

IND

IAN

TO

NE

RS

& D

EV

EL

OP

ER

S L

TD

.

Notes to the Consolidated Financial Statements as at 31st March, 2019

NOTE NO. 2 - Property , Plant & Equipments (Rs. in lakhs)

Particulars Freehold

Land

Leasehold

Land

Building Plant &

Equipment

Computers & IT

Equipment

Electric

Installation

Office Equipment

Furniture

& Fixtures

Motor

Vehicle

Total

Gross Block

As at 01.04.2018 362.56 500.04 1,005.91 6,408.26 46.50 513.84 64.29 130.79 302.87 9,335.06

Additions - - 142.51 133.43 5.89 33.74 16.13 36.24 367.94

Acquired through business

combinations

- - - - - - - - - -

Acquisition of a subsidiary - -

Assets held for distribution - - - - - - - - -

Disposals (1.84) (1.84)

Demergers - - - - - - - - -

Other adjustments - - - - - - - - - -

- Adjustments - - - - -

- Borrowing costs - - - - - - - - -

- Exchange difference - - - - -

As at 31.03.2019 362.56 500.04 1,148.42 6,539.85 52.39 547.58 80.42 167.03 302.87 9,701.16

Depreciation

As at 01.04.2018 - 12.19 317.32 3,293.61 36.61 279.09 36.88 76.65 94.64 4,146.99

Charge for the year - 6.18 32.73 220.74 5.82 51.16 8.93 14.84 34.62 375.02

Disposals - - - (0.63) - - - - - (0.63)

Adjustments ( as per Ind-AS) -

As at 31.03.2019 - 18.37 350.05 3,513.72 42.43 330.25 45.81 91.49 129.26 4,521.38

Net Block

As at 31.03.2019 362.56 481.67 798.37 3,026.13 9.96 217.33 34.61 75.54 173.61 5,179.78

As at 31.03.2018 362.56 487.85 688.59 3,114.65 9.89 234.75 27.41 54.14 208.23 5,188.07

124


NOTE NO. 3 - Capital Work In Progress (Rs. in lakhs)

Particulars Capital Work

In Progress

As at 01.04.2018 94.62

Addition During The Year 198.13

Deduction During The Year 205.19

As at 31.03.2019 87.56

NOTE NO. 4 - Other Intangible Assets

(Rs. in lakhs)

Particulars Computer

softwaresTotal

Gross Block

As at 01.04.2018 40.27 40.27

Additions 1.56 1.56

As at 31.03.2019 41.83 41.83

Amortization

As at 01.04.2018 36.13 36.13

Charge for the year 2.07 2.07

Disposals - -

Adjustments - -

As at 31.03.2019 38.20 38.20

Net Block

As at 31.03.2019 3.63 3.63

As at 31.03.2018 4.14 4.14

125


Note No.5 Non Current Investment (At Fair Value ) (Rs in lakhs)

Non - current

Sr.

NoParticulars

No. Of Units

{31.03.2019}

[31.03.2018]

As at 31st

March 2019

As at 31st

March 2018

1 Investment in Mutual Funds

a UTI-Fixed Term Income Fund Series xxviii(1134days) {1000000} 105.10 100.31

[1000000]

b UTI Ultra Short Term Fund -G {41444.428} 1,255.33 2,158.12

[76405.849]

c Reliance Fixed Horizon Fund {1000000} 126.35 116.76

[1000000]

d ABSL Banking and PSU Debt Fund-G {200923.242} 478.42 445.18

[200923.242]

e ICICI Prudential Medium Term Fund -G {1659103.918} 472.00 448.68

[1659103.918]

f ICICI Prudential Banking & PSU Debt Fund {6404911.543} 1,359.43 1,279.57

[6404911.543]

g ICICI Prudential Short Term Plan {2777801.047} 1,073.23 1,005.91

[2777801.047]

h Kotak Credit Risk Fund ( Income Opportunities Fund - Growth) {1246136.236} 253.51 238.33

[1246136.236]

i ABSL Corporate Bond Fund-G {843623.803} 604.70 560.55

[843623.803]

j SBI Debt Fund Series C-14 {1000000} 107.27 100.38

[1000000]

2 Investment in Corporate Bond

a Reliance Debentures {20} 210.18 -

b Mahindra and Mahindra Financial Services Ltd {150} 1,522.95 -

c Tata Capital Financial Services Ltd. {30} 302.49 -

Total 7,870.96 6,453.79

126


Note No.: 6 Other Financial Assets (Rs in lakhs)


Sr.

No


March 2019

As at 31st

March 2018

As at 31st

March 2019

As at 31st

March 2018

1 Security Deposits

Unsecured, considered good 140.31 142.38 2.50 5.31

Sub Total (A) 140.31 142.38 2.50 5.31

2 Others

i) Fixed Deposit with Banks having maturity

of more than 12 months

72.92 66.52 - -

ii) Interest Accrued on Fixed Deposits - - 23.65 35.81

iii) Insurance Claims Receivable - - 5.34 9.21

Sub Total (B) 72.92 66.52 28.99 45.02

Total (A + B ) 213.23 208.90 31.49 50.33

Note No. : 7 Deferred Tax Asset/Liabilities (Net)

Sr.

No


March 2019

As at 31st

March 2018

1 Deferred Tax Liability on account of :

Accelerated Depreciation on

Property Plant & Equipment 535.57 622.01

Fair Valuation of Mutual Funds 251.47 179.58


Deferred Tax Liability (A) 869.80 883.65

2 Deferred Tax Asset on account of :

Provision for Leave Encashment 26.92 32.77


Deferred Tax Asset (B) 55.62 53.03

Net Deferred Tax Liability C = (A-B) 814.18 830.62

3 MAT Credit entitlement (D) 738.83 638.10

4 Deffered tax on OCI (E) 20.81 11.66

Net Deferred Tax Liability/ (Asset) (C-D-E) 54.54 180.86

127


Note No.: 8 Other Assets (Rs in lakhs)


Sr.

No


March 2019

As at 31st

March 2018

As at 31st

March 2019

As at 31st

March 2018

1 Capital Advance 100.46 13.03 - -

2 Others

i) Prepaid Expenses 0.30 0.94 38.95 37.41

ii) Deferred Expenses of Rent 1.70 2.54 0.85 0.85

iii) Export Benefit Receivable 17.15 44.21

iv) IGST Refund Receivable 145.41 308.08

iv) Balance With Govt Authorities 143.73 152.13

vi) Focus Licence in hand - 23.00 16.52

vii) Others 13.10 34.75

Total 115.56 51.26 369.09 559.20

Note No. : 9 Inventories

Sr.

No


March 2019

As at 31st

March 2018

1 Raw Material (Including Material in Transit)* 1,064.69 740.02

2 Work-in-Progress (Toners) 138.14 173.33

3 Finished Goods (Toners) 309.18 226.64

4 Oil & Lubricants 32.56 25.83

5 Stores & Spares 121.61 104.81

6 Packing Material 105.30 83.75

7 Finished Goods of Trading Material 99.40

Total 1,870.88 1,354.38

*Material in Transit amounting to Rs. 130.02 lakhs in current year (P.Y. amounting to Rs. 95.49 lakhs.)

Note No. :10 Current Investment (At the fair value)

Sr.

No

Particulars No. Of Units

{31.03.2019}

[31.03.2018]

As at 31st

March 2019

As at 31st

March 2018

1 Investment in Mutual Funds (unquoted)

(Units of Rs. 10 each, unless

otherwise specified)

a KOTAK Equity Arbitrage Fund - Dividend Monthly

Reinvest

{9765878.890} 1,045.77 2,162.18

[20220851.096]

Total 1,045.77 2,162.18

128


Note No. : 11 Trade Receivables

(Rs in lakhs)

Sr.

No


March 2019

As at 31st

March 2018

a Trade Receivables Considered Good -Secured 55.69 50.77

b Trade Receivables Considered Good -Unsecured 1734.21 1,668.87

c Trade Receivables which have significant Increase in credit Risk - -

d Trade Receivables - Credit Impaired - -

Total 1,789.90 1,719.64

Less : Provision/ Allowance for Doubtful Debts - -

Total 1,789.90 1,719.64

Note No. : 12 Cash & Cash Equivalents

Sr.

No


March 2019

As at 31st

March 2018

1 Cash & Cash Equivalent

Cash Balance 3.85 4.03

Sub Total (A) 3.85 4.03

2 Balance with Bank

Current Account 87.55 110.31

EEFC account 285.04 25.51

Cheque on hand - 0.03

Sub Total (B) 372.59 135.85

3 With SBI, Jasola (Emp. Trust A/C) - 0.75

Sub Total (C) - 0.75

4 Other Bank Balances

Unfixed Deposits 700.61 342.06

Sub Total (D) 700.61 342.06

Total [ A + B + C + D] 1,077.05 482.69

Note No. : 13 Bank Balances Other than Cash & cash Equivalents

Sr.

No


March 2019

As at 31st

March 2018

i) Axis Bank Limited ( Dividend Account) 35.21 11.76

ii) Margin Money held with Bank having maturity more than 3 months but upto

12 months

351.36 321.77

Total 386.57 333.53

129


Note No.: 15 Current Tax Assets (Net)

Sr.

No


March 2019

As at 31st

March 2018

i) Advance Income Tax (including TDS) 500.67 566.73

ii) Less :Income Tax (519.50) (533.01)

Total (18.83) 33.72

Note No. :14 Loans

(Rs in lakhs)

Sr.

No


March 2019

As at 31st

March 2018

a Loan Receivables Considered Good -Secured

b Loan Receivables Considered Good -Unsecured 14.17 36.55

c Loan Receivables which have significant Increase in credit Risk

d Loan Receivables - Credit Impaired

Total 14.17 36.55

NOTE NO. 16 - Share Capital

Sr

No.


March 2019

As at 31st

March 2018

1 AUTHORIZED SHARE CAPITAL

20800000 Equity Shares of Rs. 10/- each. 2,080.00 2,080.00

(P/y 20800000 Equity Shares of Rs. 10/- each)

2,080.00 2,080.00

2 ISSUED, SUBSCRIBED & PAID UP SHARE CAPITAL

13161610 Equity Shares of Rs. 10/- each,fully paid 1,316.16 1,316.16

(P/y 13161610 Equity Shares of Rs. 10/- each,fully paid)

Total 1,316.16 1,316.16

16.1 The Company held only one class of equity shares, having a par value of Rs 10 per share.Each shareholder is

eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining

assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

16.2 Details of shareholders holding more than 5% of the aggregate shares in the company :

Sr

No.


March 2019

As at 31st

March 2018

Name of the shareholders % of

Holding

% of Holding

1 Sushil Jain 34.41 34.37

2 Aashima Jain 8.69 8.69

3 Nandita Jain 14.13 14.13

4 Akshat Jain 10.63 10.63

130


NOTE NO. 17 - Other Equity

(Rs. in Lakhs)

OTHER EQUITY Reserves and Surplus Comprehensive

Income

Total

Capital

Redemption

Reserve

Revaluation

Reserve

Capital

Reserve

General

Reserve

Surplus /


comprehensive

income

Total

Balance as at 01.04.2018 - 530.72 - 5,240.74 9,285.99 -22.42 15,035.03


other adjustments - - - - (12.46) - (12.46)

Foreign Currency translation

Differences for Foreign Operations - - - - - 1.03 1.03

other increase/reduction during the

year

Items of OCI for the year ended, net

of tax-

- - - - - - -


(22.26) (22.26)

Total Comprehensive Income for


- 530.72 - 5,240.74 11,266.75 (43.65) 16,994.56



Tax on Dividend - - - - 81.19 - 81.19

Transferred to / (from) - Surplus /

(Deficit) - - - - - - -

Transferred to / (from) - Revaluation

Reserve

- - - - - - -

Total (B) - - - - 476.04 - 476.04

Balance as at 31.03.2019(A)-(B) - 530.72 - 5,240.74 10,790.71 (43.65) 16,518.52

Note No. : 18 Other Financial Liabilities

Sr.

No


As at 31st

March, 2019

As at 31st

March, 2018

As at 31st

March, 2019

As at 31st

March, 2018

1 Trade Deposits from Dealers & Distributors 55.70 50.77 - -

2 Unpaid & Unclaimed Interim Dividend - - 35.21 11.77

3 Lease Rent Equilisation Reserve 26.24 25.84 - -

Total 81.94 76.61 35.21 11.77

131


Note No. : 19 Provisions

(Rs in Lakhs)

Sr.

No


As at 31st

March, 2019

As at 31st

March, 2018

As at 31st

March ,2019

As at 31st

March, 2018

1 Employee Benefits


Total 63.81 79.42 28.65 15.27

Note No. : 20 Trade Payables

Sr.

No


As at 31st

March , 2019

As at 31st

March, 2018

As at 31st

March 2019

As at 31st

March 2018

1 Trade Payables

Total outstanding dues of micro enterprises and

small enterprises

- - 26.19 -

Total Outstanding due of creditors Other Than

Micro Enterprises and Small Enterprises

- - 1,591.36 1,617.83

Total - - 1,617.55 1,617.83

Note No. : 21 Other Current Liabilities

Sr.

No


As at 31st

March , 2019

As at 31st

March, 2018

As at 31st

March 2019

As at 31st

March 2018

1 Trade Advances - - 6.96 14.46

2 Statutory Dues Payable - - 85.82 122.24

3 Accrued Salaries & Benefits Payable - - 129.21 156.53

4 Other Payables - - 98.44 106.82

Total - - 320.43 400.05

132


Note No. : 22 Revenue from Operations (Rs. In Lakhs)

Sr.

No


March, 2019

Year Ended 31st

March, 2018

1 Sale of Products

TONERS

Revenue - Domestic Manufactured Sales* 8,677.82 8,465.49

Revenue- Export Manufactured Sales 2,940.01 2759.12

Revenue-Domestic Trading Sales 13.30 -

Revenue- Export Trading Sales 47.24 -

11678.37 11224.61

Less : Discount and Allowances 365.49 297.78

Sub Total (A) 11,312.88 10,926.83

2 Other Operating Revenue

Revenue - Scrap sale 2.85 5.08

Export Incentive 125.76 121.58

IGST Budgetory Support 87.18 178.58

Sub Total (B) 215.79 305.24

Total (A+B) 11,528.67 11,232.07

*Sales include excise duty of Rs Nil in CY & Rs 5.48 Lakhs in the previous year 2017-18

Note No. : 23 Other Income

Sr.

No


March, 2019

Year Ended 31st

March, 2018

1 Interest Income 80.47 55.20

2 Dividend Income -

- current investments 90.09 109.94

3 Provision no longer required written back 33.14 9.07

4 Other Non Operating Incomes 19.92 168.36

5 Proift on sale of mutual fund & Others 15.92 10.73

6 Increase in Value of NAV 409.50 369.04

Total 649.04 722.34

Note No. : 24 Cost of Raw Materials Consumed

Sr.

No


March, 2019

Year Ended 31st

March, 2018

RAW MATERIALS

Opening stock 644.53 624.01

Add: Purchases 5,398.25 4,831.13

Less: Closing Stock 934.67 644.53

133


Raw Materials Consumed 5,108.11 4,810.61

Note No. : 25 Other Manufacturing Expenses

(Rs. In Lakhs)

Sr.

No


March, 2019

Year Ended 31st

March, 2018

1 Packing Materials Consumed 522.90 493.38

2 Stores and Spares Consumed 103.99 106.28

3 Power & Fuel 1,008.62 933.04

4 Repairs & Maintenance - Plant & Machinery 51.84 47.71

5 Repair & Maintenance - Building 12.52 9.36

6 Security Expenses 24.79 24.71

Total 1,724.66 1,614.48

Note No. : 26 Change in inventories of finished goods & work-in-progress

Sr.

No


March, 2019

Year Ended 31st

March, 2018

(Rs. In Lakhs)

1 Inventories at the end of the year

Finished Goods (toners) 369.00 226.64

Work-in-Process (toners) 138.14 173.33

Trading Goods 37.08 -

544.22 399.97

2 Inventories at the beginning of the year

Finished Goods (toners) 226.64 129.26

Work-in-Process (toners) 173.33 132.13

Trading Goods - -

399.97 261.39

Net Decrease/(Increase) during the year (144.25) (138.58)

Note No. : 27 Employee Benefit ExpensesSr.

No


March, 2019

Year Ended 31st

March, 2018

1 Salaries, Wages, Bonus etc. 1,343.25 1,241.48

2 Contribution to Provident & Other Fund 78.41 71.10

3 Staff Welfare Expenses 27.27 21.18

Total 1,448.93 1,333.76

134


(Rs. In Lakhs)

Note No. : 28 Finance Costs

Sr.

No


March, 2019

Year Ended 31st

March, 2018

1 Interest Expense 63.10 56.79

Total 63.10 56.79

Note No. :29 Depreciation

Sr.

No


March, 2018

Year Ended 31st

March, 2018

1 Depreciation 377.09 367.57

Total 377.09 367.57

Note No. :30 Other Expenses

Sr.

No


March, 2019

Year Ended 31st

March, 2018

1 Rent 70.89 75.50

2 Rates & Taxes 7.55 8.41

3 Insurance 26.12 31.49

4 Repairs & Maintenance - Computers 2.23 3.49

5 Repair & Maintenance Office 24.03 21.70

6 Advertisement & Sales Promotion 28.81 40.88

7 Communication Expenses 36.49 30.95

8 Travelling Expenses (Including Foreign Travelling) & Conveyance 186.81 203.01

9 Vehicile Running & Maintenance 33.00 31.95

10 Staff Recruitment & Seminar Expenses 0.79 1.73

11 Printing & Stationery 11.24 7.77

12 Electricity & Water Expenses 5.83 7.06

13 Auditors Remuneration -

As Audit fees 4.50 4.00

As Tax Audit fees 1.50 0.75

For Other Services - 1.25

14 Legal, Professional & Consultancy Expenses 67.01 54.21

15 Director Sitting Fees 2.70 3.32

16 Freight, Clearing & Forwarding Expenses 255.69 236.49

17 Other Borrowing Cost ( Bank Charges) 55.02 53.29

18 Commission on Sales 3.16 31.32

19 Loss on Sale of Fixed Assets - 7.93

20 Corporate Social Responsibilty Expenses 41.31 33.22

21 General Expenses 70.24 52.70

22 Foreign Exchange Fluctuations 76.04 5.09

23 Warehousing Exp. 7.52 5.42

Total 1,018.48 952.93

135


Note No. : 31 Exceptional Items

(Rs. In Lakhs)

Sr.

No


March, 2019

Year Ended 31st

March, 2018

1 Legal and Professional Fees For Germany Project 30.68 -

Total 30.68 -

32 Disclosure as per Ind AS 2 ‘Inventories’

Inventory Consumed of Rs 6743.62 Lakhs (PY 6343.31 Lakhs) have been recognised as an expenses. The details are

as under:

(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Raw Material 5,108.11 4,810.61

Packing & Store Materials 626.89 599.66

Power & Fuel 1,008.62 933.04

Total 6,743.62 6,343.31

33 Disclosure as per Ind AS 12 ‘Income Tax’

Deferred tax asset (DTA) and deferred tax liability (DTL) are recognised as per Indian Accounting Standard 12. DTA/DTL is

recognised and carried forwarded to the extent capable of reversal.

Details of Deferred Tax Assets / Liabilities as under:-

i) Income Tax recongnised in statement of profit & loss .(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Current Tax Expenses

Current year (519.50) (533.01)

Adjustment for earlier year (76.56) (11.10)

Total current Tax expenses (596.06) (544.11)

Deferred Tax Expenses 14.40 24.79

Mat Credit Entitlement 106.33 (26.82)

Total Tax expenses (475.33) (546.14)

ii) Income tax recognised in other comprehensive income

(Rs in Lakhs)


Before Tax Tax Expense/

Benefit Net of Tax


Foreign currency translation differences for foreign operations 1.03 - 1.03

Total (30.38) 9.15 (21.23)

136


(Rs in Lakhs)


Before Tax Tax Expense/

Benefit Net of Tax


Foreign currency translation differences for foreign operations (0.03) - (0.03)

Total (16.68) 5.76 (10.92)

iii) Reconciliation of tax expense and accounting profit multiplied by india’s domestic rate(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Profit before tax 2,468.55 2,951.37

Tax using the domestic tax rate 29.12 % (PY 34.608%) (519.50) (533.01)

Tax effect of :

Non deductible tax expenses 14.40 24.79

Deductable tax expenses (76.56) (11.10)

MAT Credit Entitlement 106.33 (26.82)

Total tax expenses in the statement of profit and loss (475.33) (546.14)

iv) Movement in Deferred Tax Balances

31st March 2019 (Rs in Lakhs)

Particulars Net balance

01.04.2018

Recognise in

Profit & Loss Recognised

in OCI

Net balance

31.03.2019


883.65 (86.44) 797.21

Others - 72.59 - 72.59

Tax assets/liabilities 883.65 (13.85) - 869.80


Less : Mat Credit Entitlement 638.10 100.73 - 738.83

Net tax (Assets)/liabilities 180.86 (117.17) (9.15) 54.54

31st March 2018

Particulars Net balance

01.04.2017

Recognise in

Profit & Loss Recognised

in OCI

Net balance

31.03.2018


905.00 (21.35) 883.65

Others - - - -

Tax assets/liabilities 905.00 (21.35) - 883.65

Less : Deferred Tax Assets 55.49 (2.46) 11.66 64.69

Less : Mat Credit Entitlement 664.92 (26.82) - 638.10

Net tax (Assets)/liabilities 184.59 7.93 (11.66) 180.86

137


34 Disclosure as per Ind AS 16 ‘Property, Plants & Equipments’

The construction work is in progress in Administrative Block of the company coming up at Sitarganj and Rampur Plant. Hence, expenses pertaining to this project incurred during the year have been treated as part of Capital Work in Progress (including

intangible assets under development) and the same are to be capitalised on commencement of commercial production.

(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Opening Balance of CWIP (including intangible assets under development) 94.62 786.31

Less : Capitalized during the year (205.19) (890.23)

Expenses Incurred During the Year

Plant Building (Civil Work) 125.25 74.47

Plant & Machinery 23.28 104.89

Electric Installation 11.96 18.15

Office Equipment 37.64 1.03

Closing Balance of CWIP (including intangible assets under development) 87.56 94.62

35 Disclosure as per Ind AS 17 ‘ Leases’

I Assets taken on Operating Lease by Indian Toner & Developer Limited (Holding)

a) The Company has taken office space on operating lease. The lease payments are payable by the company on a monthly or quarterly basis

b) Future minimum lease rentals payable under non- cancellable lease agreements are as under:-

(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

- Non-cancellable operating lease rentals payable (minimum lease payments) under these leases

are as follows:

Not Later than one year 60.95 60.95

Later than one year and not later than five years 149.33 210.28

Later than five years - -

Total 210.28 271.23

c) Lease payment recognised in the Statement of Profit & Loss for the year 2017-18 is Rs 70.89 Lakhs ( Rs 75.50 Lakhs in the year 2017-18)

36 Disclosure as per Ind AS 19 ‘ Employee Benefit’A) Defined contribution plan

During the year company has recongised the following amounts in the statement of profit and loss . (Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Benefits(Contributed to ITDL - Holding )

Provident fund 34.61 15.09

Employees pension scheme 1995 22.63 34.23

Benefits(Contributed to ITDL USA- Subsidiary )

FICA 2.88 2.93

FUTA 0.03 0.03

SUTA 0.17 0.12

Total 60.32 52.40

138


B) Defined benefits plan of Indian Toners & Developers Limited- HoldingGratuity

The company has a defined benefit gratuity plan. Every employee who has rendered continuous service of 5 years or more is entitled to gratuity at 15 day salary (15/26 * last drawn basis salary plus dearness allowances) for each completed year for five years or more subject to maximum of rupees 20 lakhs on superannuation, resignation ,termination ,disablement ,or on death.

Leave encashment

The company has a policy to pay leave encashment. Every employee is entiltled to claim leave encashment after his/her

retirement/termination which is calculated based upon no. of leaves taken. The company pays leave encashment on normal

retirement for a maximum of 54 days or actual accumulation whichever is less.

Reconcilation of opening and closing balances of the present value of the defined benefit obligation :(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Present Value of obligation as at the beginning of the period 193.08 94.67 169.69 84.74

Current service cost 17.84 17.33 18.03 9.53

Interest cost 14.93 7.34 12.52 6.27

Actuarial (gain)/loss (30.50) (17.72) 17.10 (5.85)

Benefit paid (6.12) (9.16) (24.26) -

Present value of obligation as at the end of the period 189.23 92.46 193.08 94.69

Changes in the Fair Value of Plan Assets

(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Fair value of plan assets, at the beginning of the period 155.15 - 144.04 -

Actual Return on plan assets 12.90 - 11.08 -

Employer’s contributions 17.15 - 24.53 -

Fund Charges (0.32) (0.24)

Benefits paid (6.12) - (24.26) -

Fair value of plan assets at the end of the period 178.76 - 155.15 -

Amount recognized in the balance sheet consists of:

(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Present value of defined benefit obligation 189.23 92.46 193.08 94.69


Net liability (10.47) (92.46) (37.93) (94.69)

Amounts in the balance sheet:

Current Liability 23.96 28.65 57.78 15.27

Non–current liabilities 165.27 63.81 135.30 79.42

Net liability 189.23 92.46 193.08 94.69

139


Total amount recognized in Profit or Loss consists of: (Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Total Service Cost 17.84 17.33 18.03 9.53

Interest Cost 2.93 7.32 1.89 6.25

Fund Charges 0.32 (17.72) 0.27 -

Acturial Gain/(Loss) - - - (5.85)

Adjustments - - 0.04 -

Benefit Paid - (9.16) - -

Net Interest 21.09 (2.23) 20.23 9.93

Amount recognized in other comprehensive income consists of:

(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Acturial Gain/(Loss) on Obligation (30.51) (17.72) (17.10) (5.85)

Acturial Gain/(Loss) on Assets (0.90) - 0.45 -

Total Acturial Gain/(Loss) recognised in (OCI) (31.41) (17.72) (16.65) (5.85)

Acturial (Gain)/Loss on obligation Consists:

(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Actuarial (gains)/losses arising from changes in demographic

assumptions

- - - -

Actuarial (gains)/losses arising from changes in financial assumptions

16.08 (1.48) (14.79) (2.11)

Actuarial (gains)/losses arising from changes in experience

adjustments on plan

(48.46) (16.24) 31.89 (6.46)

Total Acturial (Gain)/Loss (32.38) (17.72) 17.10 (8.57)

Information for funded plans with a defined benefit obligation less than plan assets: (Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Defined benefit obligation 189.23 92.46 193.08 94.69


Net Liability (10.47) (92.46) (37.93) (94.69)

140


Reconciliation of the present value of defined benefit obligation and the fair value of the plan assets:

(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Gratuity Leave

encashment

Gratuity Leave

encashment

Present value of obligation as at end of the period 189.23 92.46 193.08 94.69

Fair value of plan assets at period end 178.76 - 155.15 -

Unfunded status excess of Actual over estimated. (10.47) (92.46) (37.93) (94.69)

Assets/(Liabilities) recognized in the Balance Sheet (10.47) (92.46) (37.93) (94.69)

II) Sensitivity analysis

Reasonable possible change at the reporting date to one of the relevant actuarial assumption, holding other assumption constant,

would have effected the defined benefit obligation by the amount shown below.(Rs in Lakhs)

Particulars Gratuity Leave encashment

Increase Decrease Increase Decrease

Discount rate ( 0.50 % movement) (4.84) 5.08 (2.56) 2.67

Salary escalation rate ( 0.50% movement) 5.19 (4.98) 2.73 (2.61) III) Expected Maturity analysis of the defined benefits plan in future years

(Rs in Lakhs)

Particulars 0 to

1Year

1 to 2Year 2 to

3Year

More than 3

Years

Gratuity 41.48 49.26 36.86 105.04


Total 76.86 59.91 53.81 127.99

C) Defined benefit Obligation of Indian Toners & Developers Limited- Holding

I) Actuarial assumption

The folllowing were the principal actuarial assumption at the reporting date.(Rs in Lakhs)

Particulars 31.03.2019 31.03.2018

Discount rate* 7.66% 7.73%

Salary escalation rate*** 5.00% 5.00%

Valuation Methodology Projected

Unit Credit

Method

Projected Unit

Credit Method

* The discount rate assumed is 7.66% which is determined by reference to market yield at the balance sheet date on government

bonds.

** The expected rate of return on plan assets is determine considering several applicable factor mainly the composition of plan

assets held, assessed risk of assets management and historical return from plan assets.

*** The estimates of future salary increase considered in actuarial valuation, taking account of inflation, seniority promotion business plan, HR policy and other relevent factors on long term basis.

141


IV) Risk exposure

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to

various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future

valuations will also increase the liability.

B) Investment Risk – If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the

discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D) Mortality & disability – Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the

liabilities.

E) Withdrawals – Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at

subsequent valuations can impact Plan’s liability.

37 Disclosure as per Ind AS 21 ‘The Effects of Changes in Foreign Exchange Rates’

a) The amount of exchange differences (net) debited to the Statement of Profit & Loss is 76.04 Lakhs (31 March 2018: Rs 5.09 Lakhs).

b) Net exchange differences recognised in Other Comprehensive Income amounting to Rs 1.03 Lakhs in the year 2018-19 ( Rs 0.03 lakhs in the year 2017-18) on account of foreign currency translation difference of ITDL - USA Co.

38 Disclosures as per Ind AS -24 ‘Related Party Disclosures’

a) Subsidiary Company

Indian Toners USA Co.(WOS)

b) Related Parties over which the KMP has a significant influence

Jain Tube Co.Ltd.

Shrilon India LLP

c) Key Management Personnel :

Mr.Sushil Jain,(Chairman & Managing Director)

Mr.Akshat Jain (Whole Time Director from 01.04.2018)

Mr. Sanjeev Goel ( Independent Director )

Mr. Arun Kumar Garg (Independent Director)

Ms. Neena Jain (Independent Director)

Mr.S.C. Singhal (Company Secretary)

Mr.N.K.Maheshwari (CFO)

d) Relative of KMP

Smt. Nandita Jain (Wife of Sushil Jain, CMD)

Smt. Devanshi Jain ( Daughter-in-law of Sushil Jain, CMD)

Ms. Ashima Jain (Daughter of Sushil Jain)

142


I Transactions with Directors / KMP

(Rs in Lakhs)


1 Remuneration to Chairman & Managing Director


- Post Employment Benefits - 35.73



2 Remuneration to Whole Time Director


- Other Long Term Employee Benefits 7.20 -


3 Remuneration to Chief Financial Officer



4 Remuneration to Company Secretary



-Dividend paid to Company Secretary 0.003 0.002

5 Dividend paid to Mr. Sanjeev Goyal 0.008 0.002

II Transactions with Relatives of KMP

(Rs in Lakhs)


Remuneration to Nandita Jain - 7.89

Dividend paid to Nandita Jain 55.81 27.90

Dividend paid to Sushil Jain (HUF) 5.48 2.74

Dividend paid to Devanshi Jain 0.003 0.002

Dividend paid to Ashima Jain 34.31 17.16

III Sitting Fees Paid to Independent Directors during the year is Rs 2.70 Lakhs (PY 3.20 Lakhs)

143


39 Earnings per share (EPS) – EPS is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Numbers used for calculating basic and

diluted earnings per equity share are as stated below:

(Rs. in Lakhs)

Particulars Units 31.03.2019 31.03.2018

Profit after tax Rs. in Lakhs 1,993.22 2,405.23

Weighted Average Number of Shares outstanding during the year No.in Lakhs 131.62 131.62

Face Value per Share (Rs.) 10.00 10.00

Basic EPS in Rs 15.14 18.27

Diluted EPS in Rs 15.14 18.27

40 Disclosure as per Ind AS 37 ‘Provisions, Contingent liabilties and Contingent assets’

(Rs. in Lakhs)

Particulars 31.03.2019 31.03.2018

a) Contingent liabilities & Commitments

Outstanding Letter of Credit issued by bank on behalf of company 2,152.97 2,058.89

Export Obligation against Advance Licence & Plant & Machineries 554.47 1,030.01

Bank Gurantee 22.85 17.50

b) Claim against company, disputed by Company, not acknowledge as debts Nil Nil

c) Commitments :

(i) Capital Commitment Nil Nil

Executed on capital account (Net of advances)

(ii) Other Commitment Nil Nil

41 Disclosure as per Ind AS 113 ‘Fair Value Measurement’

A) Financial Instruments By Category/ Hierarchy(Rs. in Lakhs)


hierarchy

31.03.2019

FVTPL FVTOCI Amortized

cost

Financial Assets:

Investments in Mutual Funds Unquoted 1 6,881.11 - -

Investments in Bonds Unquoted 2,035.62

Trade Receivables 3 - - 1,789.90

Cash and Cash Equivalents 3 - - 1,077.05

Bank balances other than cash and cash equivalent 3 - - 386.57

Loans & Advances 3 - - 14.17


Other Financial Assets 3 - - 101.91

Total Financial Assets 8,916.73 - 3,512.41

Financial Liability:

Borrowings 3 - - -



Total Financial Liability - - 1,734.70

144


(Rs. in Lakhs)


hierarchy

31.03.2018

FVTPL FVTOCI Amortized

cost

Financial Assets:

Investments in Mutual Funds Unquoted 1 8,615.97 - -

Investments in Bonds Unquoted - -

Trade Receivables 3 - - 1,719.64

Cash and Cash Equivalents 3 - - 482.69

Bank balances other than cash and cash equivalent 3 - - 333.53

Loans 3 - - 36.55


Other Financial Assets 3 - 111.54

Total Financial Assets 8,615.97 - 2,831.64

Financial Liability: -

Borrowings 3 - - -



Total Financial Liability - - 1,706.21

The carrying amount of short term borrowings, trade payables, trade receivables, cash & cash equivalents and other financial assets and liabilities are considered to be the same at their Fair values, due to their short term nature.

There are no transfers between Level 1, Level 2 and Level 3 during the years ended 31st March 2019 and 31st March 2018 .

42 Details of dues to Micro, Small and Medium Enterprises defined under the MSMED Act, 2006As required by Section 22 of the Micro, Small and Medium Enterprises Developmet Act, 2006 the following information is

disclosed:

(Rs. in Lakhs)

S.

No.

Particular 2018-19 2017-18

a) Principal amount due and remaining unpaid to supplier at the end of the accounting year -

b) The amount of Interest paid by the buyer in terms of section 16 of the MSME Act , along with the

amount of the payment made to the supplier beyond the appointed day during the year.

- -

c) The amount of interest due and payable for the period of delay in making payment (which has been

paid but beyond the appointed day during the year) but without adding the interest specified under the MSME Act, 2006

- -

d) The amount of interest accrued and remaining unpaid at the end of the accounting year. - -

e) The amount of further interest remaining due and payable in suceeding year, untill such date when

the interest dues above are actually paid to the small enterprises, for the purpose of disallowance

of a deductible expenditure under sec 23 of the MSME, Act ,2006.

- -

43 Disclosure as per Ind AS 107 ‘Financial instrument disclosure’

A) Capital Management

Risk management

For the purpose of Company’s Capital Management , Capital includes issued equity share capital.

‘Net Debt’ (total borrowings net of cash and cash equivalents and other bank balances) divided by ‘Total Equity’ (as

shown in the standalone Balance sheet, inluding non-controlling interest).

145


The gearing ratios were as follows:(Rs. in Lakhs)

Particulars 31.03.2019 31.03.2018

Net debt No Debt No Debt

Total equity 17834.69 16351.19

Net debt to equity ratio NA NA

B) Financial Risk management

Risk management framework The Company’s board of directors has overall responsibility for the establishment and oversight of the company’s risk

management framework.

The Company through three layers of defence namely policies and procedures, review mechanism and assurance

aims to maintain a disciplined and constructive control environment in which all employees understand their roles and

obligations. The Audit committee of the Board with top management oversee the formulation and implementation of the

risk management policies. The risk are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments: - credit risk (see(i);

- liquidity risk (see(ii); and

- market risk (see(iii).

i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments.

a) The carrying amount of financial assets represents the maximum credit risk as on reporting dateTrade receivables and other financial assets

The Company has established a credit policy under which new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether thay are institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

b) Provision for Expected credit loss:

(i) Financial assets for which loss allowance is measured using 12 month expected credit losses.

With regard to all financial assets with contractual cash flows, other than trade receiables, management belives these to be high quality assets with negligble credit risk. The management believes that the parties from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no provision for excepted loss has been provided on these financial assets.

(ii) Financial assets for which loss allowance is measured using life time expected credit losses

The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified approach.

Based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss.

146


c) Ageing of trade receivables

The Ageing of trade receivables is as below:

(Rs. in Lakhs)

Ageing 0-90

days

90-365

days

1 Year &

above

Total

Gross Carrying amount as on 31.03.2019 1682.46 107.44 0.00 1789.90


Gross Carrying amount as on 31.03.2018 1612.20 107.44 - 1719.64


ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s treasury department is responsible for managing the short-term and long-term liquidity requirements. Short term

liquidity situation is reviewed daily by the treasury deparment. Longer term liquidity position is reviewed on a regular basis by the

Company’s Board of Directors and appropriate decisions are taken according to the situation.

Exposure to liquidity risk

The following are the contractual maturities of financial liabilities based on contractual cash flows.

As at 31st March 2019 (Rs. in Lakhs)

Particulars Within 1

year

More than

1 year

Total

Trade payables 1,617.55 - 1,617.55


Total 1,652.76 81.94 1,734.70

As at 31st March 2018 (Rs. in Lakhs)

Particulars Within 1

year

More than

1 year

Total

Trade payables 1,617.83 - 1,617.83


Total 1,629.60 76.61 1,706.21

iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

a) Currency risk

The company operates internationally and portion of the business is transacted in several currencies and consequently

the company is exposed to foreign exchange risk through its and purchase from overseas suppliers in various foreign

currencies.

The company evaluate exchange rate exposure arising from foreign currency transaction and the company follow established

risk management policies, including the use of derivative like foreign exchange forward contracts to hedge exposure to foreign

risk.

Exposure to currency risk

The summary quantitative data about the Company’s exposure to currency risk as reported to the management of the

Company is as follows:

147


(Rs. in Lakhs)


JPY Amount

in INR

Amount

in USD

Amount

in INR

Inventory - - 1.08 74.78


Cash & Cash Equivalents - - 0.156 10.75

Total - - 6.660 462.554

Others - - 0.020 1.41

Trade payables 69.13 43.14 18.39 1271.96

Total 69.13 43.14 18.41 1,273.37

Net exposure (69.13) (43.14) (11.75) (810.82)


Amount

in Euro

Amount

in INR

Amount

in USD

Amount

in INR


Inventory 0.30 19.24

Cash & Cash Equivalent 0.0020 - 0.49 32.54

Total 0.0020 - 8.51 554.80

Others 0.020 1.34

Trade payables 21.17 1,379.72

Total - - 21.19 1,381.06

Net exposure 0.0020 - (12.68) (826.26)

Sensitivity analysis

A reasonable possible strengthening/ weakening of the USD or INR against all other currencies at year end would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact

of forecast sales and purchases.

(Rs. in Lakhs)

1% increase or decrease in foreign exchanges rates will have the following impact on profit before tax.Particulars 2018-19 2017-18

1%

increase

1%

decrease

1%

increase

1%

decrease

USD (9.75) 6.50 (8.16) 8.04

Euro - - 0.0019 (0.0019)

JPY - - - -

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. In order to optimize the Company’s position with regards to interest income and interest expenses and to

manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the

proportion of fixed rate and floating rate financial instruments in its total portfolio.Exposure to interest rate risk

The Company doesn’t have any borrowings . Hence the the Company is not exposed to Interest rate risk.

148


45 Other Disclosures to Statement of Profit & Loss

a) Expenses incurred in Foreign Currency

i) Value of imports calculated on C.I.F basis

(Rs. in Lakhs)

Particulars HOLDING SUBSIDIARY

31.03.2019 31.03.2018 31.03.2019 31.03.2018

Raw material 4419.41 4,501.66 - -

Stores and Spares 15.38 7.16 - -

Total 4,434.79 4,508.82 - -

ii) Other Expenses

(Rs. in Lakhs)

HOLDING SUBSIDIARY

Particulars 31.03.2019 31.03.2018 31.03.2019 31.03.2018

Travel 17.95 22.01 0.98 0.79

Legal & Professional Expense 30.68 - 2.16 2.45

Others (Exhibition, Advertisement etc.) 24.35 23.32 19.05 13.14

Employees Benefit expenses 40.89 41.51

Total 72.98 45.33 22.19 16.38

44 Disclosure as per Ind AS 108 ‘Operating Segment’

There is no separate reportable segment as the company is predominantly engaged in only one segment i.e. Toners’ therefore, Indian

Accounting standard-108 to Operating Segment issued by the Institute of Chartered Accountants of India, is not applicable to it.

However, Disclosure as per Geographical Segment is as underGeographical Segment:

(Rs. in Lakhs)

Particulars For the Year

ended 31st

March, 2019

For the Year

ended 31st

March, 2018

i) Domestic Sales 8677.82 8465.49

ii) Export Sales 2940.01 2759.12

iii) Trading Sales 13.30 -

iv) Export Trading Sales 47.24 -

Total 11678.37 11224.61

Detail of Sales: (Including export benefit on Export Sales): (Rs. in Lakhs)

Sales For the Year

ended 31st

March, 2019

For the Year

ended 31st

March, 2018

Sales 11678.37 11224.61

Excise Duty - (5.48)

Less : Discount & Allowances 365.49 297.78

Net Sales 11312.88 10921.35

149


b) Earning in Foreign Currency

(Rs. in Lakhs)

HOLDING SUBSIDIARY

Particulars 31.03.2019 31.03.2018 31.03.2019 31.03.2018

FOB Value of Export 3,137.76 2,740.09 138.87 61.00

Total 3,137.76 2,740.09 138.87 61.00

c) Payment to Auditors (excluding GST )

(Rs. in Lakhs)

Particulars 31.03.2019 31.03.2018

Fees for Statutory Audit* 4.50 4.00

Fees for Tax Audit* 1.50 0.75

Fees fo Certification - 1.25

Total 6.00 6.00

d) Derivative instruments and unhedged foreign currency exposures

(Rs. in Lakhs)


Amount in

USD

Amount in

INR

Amount in

JPY

Amount in

INR

Foreign Currency Payables - - 69.13 43.14

Foreign Currency Receivables 18.41 1,273.37 - -

(Rs. in Lakhs)


Amount in

USD

Amount in

INR

Amount in

JPY

Amount in

INR



e) Details of Research & Development Expenses :

(Rs. in Lakhs)

Particulars 31.03.2019 31.03.2018

Material Consumed 1.25 2.13

Salary, Wages and Bonus 25.78 15.34

Electricity 1.67 2.71

Depreciation 27.07 25.96

Others 30.48 17.33

Total 86.25 63.47

150


46 Disclosure of Corporate social responsibility(CSR)

As per section 135 of Companies Act the company is required to spend in every financial year , at least 2% of the average net profits of the company made during the three immediately preceding financial year in accordance with its CSR policy.

A. Gross amount required to be spent by the Company during the year 2018-19 - Rs.41.31 Lakhs (Year 2017-18 - Rs. 33.22 Lakhs)

B. Amount paid during the year on:

(Rs. in Lakhs)


Prime Minister National Releif Fund 36.51 31.13

Others 4.80 2.09

Total 41.31 33.22




FRN No.: 001604N






47Additional information as required under Schedule III of the Companies Act,2013 of the enterprises Consolidated as subsidiary

for the year 2018-19

Name of Entity

Parent Subsidiary

Indian Toners & Developers Limited ITDL USA

As a % of

Consolidated Net

Assets

Amount

As a % of

Consolidated

Net Assets

Amount

Net Assets (i.e Total assets minus total liabilities) 99.76 17,792.21 0.24 42.47

Share in profit & loss 101.91 2,031.38 (1.91) (38.16)

Other Comprehensive Income 104.85 (22.26) (4.85) 1.03

Total Comprehensive Income 101.88 2,009.12 (1.88) (37.13)

48 The Board of Directors have recommended a dividend of Rs 1.50/- per share of face value of Rs 10/- each subject to the

approval of the members of the company at its Annual General Meeting.

49 Previous year figures have been re-grouped / re-classified wherever necessary to correspond with the current years classification disclosure.

50 The financials statements has been approved by the Board on 20th May, 2019.

151


INDIAN TONERS & DEVELOPERS LIMITED

1223, DLF Tower “B” Jasola, New Delhi – 110 025.

Dear Shareholder,

Subject : Seeking Copy of PAN Card and Bank Details

Folio No. ______________

Dear Shareholder,

Securities Exchange Board of India (SEBI) has vide its Circular No.

SEBI/HO/MIRSD/DOP1/CIR/P2018/73 dated April 20, 2018 has mandated the Company / Registrar &

Transfer Agent (RTA) to obtain copy of PAN Card and Bank Account details from all the shareholders

holding share in physical form.

You are holding equity share in the Company in physical form. Accordingly, you are requested to kindly

furnish the following documents;

(1) Self-attested copy of your PAN Card.

(2) Original Cancelled cheque leaf with printed name / attested bank passbook showing the

name of account holder(s)

(3) Annexure “A” as attached.

You may send the above details to the office of the Registrar & Transfer Agent of the Company i.e.

Alankit Assignments Limited at Alankit Heights, IE/13, Jhandewalan Extension, New Delhi–110

055.

We look forward to your timely and favourable response.

Thanking you,

Yours faithfully

for Indian Toners & Developers Limited

Sd/-

S. C. Singhal

Company Secretary

------------------------------------------------------------------------------------

Annexure - A To : Alankit Assignments Ltd., Registrar & Transfer Agent,

Unit : Indian Toners & Developers Ltd. , Alankit Heights,

1E/13, Jhandewalan Extn., New Delhi – 110 055.

Dear Sir,

I / We hereby furnishing the details as required by you. Kindly record the same.

Name of Shareholder (s)

Folio No.

PAN (Enclose self-attested copy of PAN

card/s of all holders)

Bank Account No

(Enclose name printed original cancelled

cheque / attested copy of passbook)

Name of Bank

Branch Address

IFSC No

MICR No

Email ID

Mobile / Telephone number

Name of Shareholder (s) Signature of Shareholder (s)

1)

2)

3)

s

152


INDIAN TONERS & DEVELOPERS LIMITED CIN NO. L74993UP1990PLC015721

Regd. Office :

E-Mail ID : Website :

Phone No.: Fax No.:

ATTENDANCE SLIP

----------------------- ----------------------- ------------------------ ----------------------

INDIAN TONERS & DEVELOPERS LIMITED CIN NO. L74993UP1990PLC015721

Regd. Office :

E-Mail ID : Website :

Phone No.: Fax No.:

PROXY FORM

153


Sl. No. Resolutions For Against

1. Consider and adopt:

(a) Audited Financial Statement, Reports of the Board of Directors

and Auditors

(b) Audited Consolidated Financial Statement

2. Re-appointment of Sh. Akshat Jain who retires by rotation.

3. Declaration of final Dividend for the year 2018-194. Re-appointment of Sh. Sanjeev Goel as Independent Director5. Re-appointment of Sh. Arun Kumar Garg as Independent Director6. Re-appointment of Ms. Neena Jain as Independent Director

Signed this …………………………............................ day of ………….........……….. 2019

Signature of Shareholder…………………………………...................................……………

Signature of Proxy holder(s) …………………………....................................………………

Notes:

1. this form of proxy in order to be effective should be duly completed and deposited at the

Registered Office of the Company, not less than 48 hours before the commencement of the meeting.

2. A proxy need not be a member of the Company. Pursuant to the provisions of Section 105 of the Companies Act, 2013, a person can act as proxy on behalf of not more than fifty members and holding in aggregate not more than ten percent of the total share capital of the Company. Members holding more than ten percent of the total share capital of the Company may appoint a single person as proxy, who shall not act as proxy for any other member.

Affix Revenue

Stamp

ROUTE MAP OF THE VENUE FOR ANNUAL GENERAL MEETING

From:

INDIAN tONERS & DEVELOPERS LIMItED

1223, DLF Tower – B, Jasola,

New Delhi –110 025.

Printe

d b

y : C

handu

Pre

ss,

9810519841

Documents

lndian Toners Developers Ltd.2 INDIAN tONERS & DEVELOPERS LtD. Notice is hereby given that the 29th Annual General Meeting of the Shareholders of INDIAN tONERS & DEVELOPERS LIMItED